Sugar prices hit 6-year high

While the commodity market followed a negative course today, the sugar price reached its highest level since November 2016 with $0.2166.

The positive trend seen in the commodity market last week was replaced by volatility this week. While there are decreases in mostly commodity prices, especially in wheat, the price of sugar continues to rise.

While the risk appetite in global markets has decreased before the monetary policy decisions to be announced by the US Federal Reserve (Fed) tomorrow, a negative course is followed in the commodity market due to the appreciation of the dollar.

According to the pricing in the money markets, the Fed’s interest rate hike by 25 basis points tomorrow is considered certain, while the directions in the policy text and the statements of Fed Leader Jerome Powell are of great importance.

Fed influence

Analysts pointed out that the uncertainties about where the Fed will stop the rate hike in the markets continue to have an impact on asset prices, and said that this issue is expected to be clarified with the meeting tomorrow.

Despite the negative course in the commodity market, the sugar price, which saw its highest level since November 2016 with $0.2166 on the Intercontinental Exchange (ICE), is trading at $0.2154 at 14.35 prestige.

Analysts stated that the predictions for a decrease in sugar production in India caused an increase in prices, and noted that they were concerned that global supply issues could be triggered by the decrease in sugar harvest in the country.

The rise in cotton and coffee

Analysts stated that India is the world’s largest sugar producer and Brazil is the world’s largest sugar exporter, and therefore the developments in these two countries have an impact on prices.

On the other hand, a fluctuating course is observed in other agricultural commodities today. Cotton and coffee rose by 0.3 percent, while cocoa decreased by around 1%.

Wheat traded on the Chicago Mercantile Exchange decreased by 0.6 percent, corn by 0.2 percent and soybeans by 0.4 percent.

Precious metals bearish trend continues

The downward trend in precious metals continues. Today under0.9 percent, 1.9 percent in silver, 1.4 percent in palladium is the subject of the word.

Despite the strong recovery in the leading information on economic activity in China, the declines in base metal prices draw attention.

In China, the January manufacturing industry Purchasing Managers Index (PMI) was realized as 50.1, both exceeding expectations and showing that the manufacturing industry ended the contraction trend. Service branch PMI also rose to 54.4 in the country.

Although the data point to a recovery in economic activity, copper decreased by 1 percent, aluminum by 1.7 percent, zinc by 1.2 percent and nickel by 1.6 percent. The barrel price of Brent oil decreased by 1 percent.