Sugar hits sweet spot as downtrend comes to an end

SINCE hitting a high of 23.90 in October 2016, sugar has been stuck in a brutal downtrend. It has fallen by 58 per cent over the past two years to the current low of 9.91. Nonetheless, the severe bearish sentiment in sugar might also be the reason for a significant rebound as the outlook appears extremely dreadful - and a short squeeze from the speculator perspective is imminent.

Despite the downtrend accelerating in August as sugar broke below the critical 10.00 psychological round nu…