Consider the following comments about the fluctuations in the sugar price issued late last week by traders at Newedge, a commodities broker in Chicago:
”ICE Raw Sugar is standing on the edge of a cliff. After an inside day yesterday, today’s price action is alarming for the bulls. As long as October 09 (SBAV9) remains under 22.44, it is at high risk of a free fall. Strong caution is warranted.
“Like a pendulum that has been pulled too far up in one direction, we expect violent oscillations, of declining amplitude, as volatility subsides.”