Brazil is already the third largest agricultural exporter in the World. Today, only the United States and European Union sells more food on the planet that farmers and ranchers in Brazil.
Brazil already ranks first in the export ranking in various agricultural products such as sugar, beef, chicken, coffee, orange juice, tobacco and alcohol. It is also deputy leader in soybean and corn and is in fourth place in pork.
Record-high temperatures and the most severe drought in at least 80 years punish southeastern Brazil, a region accounting for 60 percent of the country’s gross domestic product (GDP). Lingering climate challenges could threaten the sugar crop.
Sugar initially fell but quickly recovered during yesterday and closed near the open of the day creating a doji pattern. The commodity remains in a bearish phase and is forming a potential double bottom pattern. The stochastic in showing an oversold market and may represent a good buying opportunity.
Expecting upward move to 15.79 on a break above previous day high at 14.66 (scenario 1).