Sugar futures in the October contract are trading lower for the 2nd consecutive trading session down another 16 points at 11.13 a pound continuing its bearish momentum hitting a fresh contract low and in my opinion looks to retest the August 24th 2015 low of 10.13 in the coming weeks ahead.
Grain futures have been drawn and quartered stemming from the publicity of the trade war with China and the Trump Administration's recent announcement of new tariffs on an additional $200 billion of Chinese goods.
Wheat prices pushed higher enough over the last couple of weeks and short-term trends were able to turn higher, but the massive selloff which took place this week took just about every commodity across the board back down into lower levels.
On July 12 the stocks and all positions report will come out. The funds carry huge short positions in the grains and will probably cover on a negative report just like they did on Friday after falling hard last Thursday.
June couldn't end fast enough for the crop markets. The weather premium and positive demand news that had built up over the spring dissipated quickly in June and the markets are searching for a bottom as we approach the 4th of July.