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Will Oil’s Rally Stop at $88? Sugar Prices Surge

January 8, 2010 at 22:43 by Vladimir Vyun

Analysts predict that crude oil’s rally will stop at $88 level. The level of $88 was a support in 2007 and at the end of 2008. Price support level at a falling market may become resistance when prices are beginning to rise. Oil rose to $83.52 per barrel (a highest level in 14 months) on January 6th.

Sugar prices increased the fourth time this week reaching the highest level in almost three decades on expectation that countries including India, the greatest buyer in the world, are going to raise imports to ease a growing supply shortage. As a result of surge in global prices sugar mills in India are forced to delay imports because high prices made overseas purchases unprofitable. Sugar futures more than doubled in the past year, touching a 29-year high yesterday in New York, as adverse weather damaged cane crops in India and Brazil, biggest growers in the world. March futures for raw-sugar delivery gained $0.0031 (1.1 percent) to $0.2831 per pound by 11:19 on ICE Futures U.S. in New York.

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