So a rally, possibly a good one could be in the cards. There isn't anything on the chart to suggest much upside. I wouldn't be afraid to probe the long side of the market, but I do not see this as a buy and hold market. If that is your trading philosophy, consider options. Let's quote a local on the sugar floor.
Resistance is just overhead.
News that China will auction off sugar from their domestic stockpiles in order to keep a lid on rising domestic sugar prices is not positive , and nor are reports of boats loading in Brazil or reports that India, the largest consumer of sugar in the world is preparing to export up to one million tonnes of sugar. While cash market tightness has provided support, it is beginning to appear that the current higher prices have managed to attract the attention of those who own sugar and would like to sell it. I suspect this is a bull market near or at its end. The weekly chart is also a bit ominous, although is does imply a bit of support near current lows near 1020 or so. Very light summertime trade.