Labelled as a wave "4", the correction has almost touched a limited depth -- the 30.50 cent level, which is also the 38.2 percent Fibonacci retracement on the rise from 28.64 cents to 31.65 cents.

A further drop below 30.25 cents will violate the bullish outlook, as sugar may move into a new price band of 29-30.20 cents.

Readers should consult their own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2011