Home > Uncategorized > Agriculture Commodities: Cotton and Sugar could be making long-term bottoms

Agriculture Commodities: Cotton and Sugar could be making long-term bottoms

Agriculture Commodities:  Cotton and Sugar could be making long-term bottoms.

 

Cotton No2:

 

 

 

 

Maintain the bullish case for Cotton outlined in my last blog-post on Agricultural commodities.  Since then, cotton went into an orderly correction dipping briefly under its 50 DMA at 73 before rallying to close the week well above it 75.39.

 

A major tradable bull run in the stock will be confirmed once cotton closes convincingly over 78, a level not too far away.  Meanwhile the completion of an orderly correction to the rally from 68 level means the breakout may not be far away.  Watch this space carefully as it has major implications for India and Pakistan.

 

 

 

 

 

Corn [$CORN]:

 

 

Corn is correcting and closed last week at 782.50.  Corn has major support at 660 that is also close to the 50 DMA area.  Unless this support is taken out in the course of the current correction, expect the bull-run to continue in corn.

 

Long-term, corn has the potential to rally towards the 850 mark by end of this year.

 

Soybean [$SOYB]:

 

 

 

Like corn, $SOYB is into a short term correction.  It has major support at 1650 and room to rally further after the current correction is over in terms of price and time.

 

The consolidation in price could take time after the huge run up.  Expect sideways movement with downward bias for a few months.

 

 

 

 

Sugar [$SUGAR]:

 

 

Sugar presents very interesting possibilities for bulls & has huge implications for sugar stocks in India.

 

Firstly, sugar continued its correction as indicated in my last post.  But it has support 18.75 followed by a rock solid support at 15 that it might not attempt to breach in the current correction.  The next few trading sessions should decide one way or the other.

 

In all likelihood, sugar has made a double bottom at 18.50 and could swiftly reverse from here into a rally to the 23/24 region and beyond.  A rally past 21 in the next 4 weeks would very bullish for sugar.

 

Rough Wheat:  [$WHEAT]:

 

 

Wheat completed a bearish correction down to 600 level in March this year and then rallied to 925.  The rally to 925 region is reactive in nature and unlikely to sustain beyond the short covering.

 

On a correction setting in, wheat may come down to test the 700 region and the market’s reaction to wheat in this price range should tell us if the correction in wheat prices is over.  Not bullish in wheat despite what looks like a breakout.

 

NB: These notes are just personal musings on the world market trends as a sort of reminder to me on what I thought of them at a particular point in time. They are not predictions and none should rely on them for any investment decisions.

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Categories: Uncategorized
  1. September 18, 2012 at 8:38 am

    I am so honored to read your articles….

  2. Arun Kumar Sureka
    September 18, 2012 at 9:12 am

    Hi do you track appli & Google ? i just wanted to know your views?

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