ICE sugar rebounds 1%, supported by weaker dollar

The U.S. dollar hovered near its lowest against the euro and Swiss franc in nearly eight weeks on Thursday, a day after minutes from the Federal Reserve's July meeting showed a bias among policymakers against raising interest rates soon.

A weaker dollar makes dollar-based soft commodities cheaper in terms of other currencies and the US currency is headed for its worst quarter in five years as investors wind back expectations for US interest rate rises in 2016.

At the close of trading early this morning, the price of sugar futures for the most active contract, the October 2016 contract, was seen to strengthen. The most active sugar futures price closed up 0.26 cents or 1.32 percent at 19.98 cents per pound.

Analyst Vibiz Research Center estimates that the price of sugar futures for further trading will strengthen again with the sentiment of the weakening US dollar after the fading expectations of a US interest rate hike. The price of raw sugar futures on ICE Futures New York potentially tests the Resistance level at 20.00 cents and 20.50 cents. Meanwhile, the Support level that will be tested if the price decreases is at 19.50 cents and 19.00 cents.

Source: vibiznews.com (djk)