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800-634-3194(March 15, 2000) SUGAR: Various bullish stories have been making the rounds recently. Some traders see Brazil's production falling more than preciously thought, while the EU may see a cut of 500,000 tonnes, while floods in Australia have also cut back production. Meanwhile, back in the real world, we may still see Thai and Indonesian selling of sugar, and while the rumor mill sees Russia as a buyer, the fact is that they have an import quota taking effect on April 1, and this will very possibly keep a lid on near-term advances. In addition, much of Russia's needs may be met by sugar from Cuba. While I see short-term weakness as remaining a fact of life, I am also beginning to suspect the lows are in or near. The weekly charts are becoming positive, while the monthly remain non-committal. And that's a change from clearly negative. While the May sugar chart is a bit negative right now and could ultimately come under pressure once more, I am beginning to look for a sign that the low is in for the sugar market.
M. Steven Morgan
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