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Sugar prices are down over 10% in the last 30 days, dragging prices closer to their 2012 lows. I view this as a sale, and have advised traders to scale into bullish trade.
My suggestion is to either buy calls or to establish longs in October futures. Those wanting some downside protection on their futures could purchase out of the money puts 1:1. Use the Fibonacci levels as your upside target, as prices should find their way back above 22 cents/lb. in the coming weeks.
Taking a longer term perspective, swing traders can gain exposure to 2013 contracts looking to stay in the trade for the coming months as long as the recent lows hold.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.