ICE Sugar Gains as Brazil Real Strengthens

The US dollar fell in early trading hours. The poor ISM Manufacturing PMI data and the ECB's monetary easing policy weakened the dollar. Likewise, against the Brazilian Real. Up to now the Brazilian Real has significantly strengthened against the US dollar.

Because Brazil is a major producer and exporter of raw sugar, its currency has a major impact on the sugar commodity market. With the strengthening of the Brazilian Real, the price of commodities sold in this currency becomes more expensive.

At the end the Saturday trading hours, the most active futures sugar price for the March 2016 contract surged. The most active future sugar price closed up by 0.24 cents or 1.56 percent, to position itself at 15.58 cents per pound.

Vibiz Research Center analysts estimate that the future sugar price movement on the ICE Futures New York will have the potential to continue strengthening. By looking at the US economic indicator data that will be released later tonight, the Non Farm Payroll which is indicated by a consensus to experience a decline, the dollar would tend to weaken again which would open the opportunity for the Real Brazil to strengthen.

The futures raw sugar price on ICE Futures New York has the potential to test support levels of 15.00 cents and 14.50 cents. While the resistance levels that will be tested if there is a price increase are at 16.10 cents and 16.60 cents.

http://www.bumn.go.id/ptpn9/berita/3159/Harga.Gula.ICE.Dikuatkan.Real.Brazil