Commodity dealers have been reporting tightness in the sugar market recently and stocks have been down in some of the major countries. Sugar has been on a good run since April 2020 in line with commodities generally. However, is this the time to go long on Sugar in line with its strong seasonals?
Sugar has a strong seasonal pattern now with an annualised return of over 90% and an average return of over 3.5%. So, is this time to turn sweet on sugar?
Major trade risks: The major risk here surround supply levels of sugar which could contradict the seasonal outlook.
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