The Case for and Against Sugar

Famous science writer, Gary Taubes is set to release a new book in late-December titled, The Case Against Sugar. Taubes has previously detailed the critical mistakes the FDA made in declaring dietary fat to be the main culprit for disease and well-being while sugar/fructose was largely viewed with a far less disdainful eye. Recent articles published which have exposed the sugar lobby and their many suspect dealings also stem from Taubes' prior gutsy research and writings. 

So while high sugar intake is clearly a troubling part of the American diet, the sugar commodity itself is showing signs of a new bull run.

After a recent pullback, the commodity is surging again today. Clearly, sugar is acting as well as any soft commodity in 2016. For several years now, we have detailed the real-time tedious nature of a potentially major bear market bottom. Indeed, it is almost never a pretty sight to try to trade in real-time. 

But the (low sugar alternative) fruits of that labor come when the bull is more established and gives us the meat of a new uptrend. 

At issue now is whether sugar is doing just that. 

On the SGG ETN daily chart, below, the new sugar bull run looks, frankly, all the more impressive than the precious metals and mining one. While gold miners and silver have been great this year on the whole, they are clearly in price correction mode now, whereas sugar has kept pullbacks contained. 

True, that may be a function of so many eyes being on gold that the market needs to shake things up and fool the majority before making the next move higher. But strength is strength and the bull case for sugar is as loud and clear as ever.