Sugar prices in the international market reached the highest level in 6 years

The positive trend seen in the commodity market last week was replaced by volatility this week.

Today, while the prices of most raw materials, especially wheat, are falling, the price of sugar continues to rise.

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

NEGATIVE FORMATION IN THE COMMODITY MARKET

Although the appetite for risk in global markets has diminished due to the monetary policy decisions that the US Federal Reserve will announce tomorrow (Fed), the commodity market is following a negative course with the effect of appreciation of the dollar.

While the Fed is considered certain to raise interest rates by 25 basis points tomorrow, based on prices in the money markets, the guidance in the policy text and remarks by Fed Chairman Jerome Powell are of great importance.

Analysts noted that uncertainties about where the Fed will stop raising rates in the markets continue to weigh on asset prices, and said that this issue is expected to be clarified with tomorrow’s meeting.

PRODUCTION CONCERNS IN INDIA PRICE INCREASE

Despite the negative course in the commodity market, the price of sugar, which registered its highest level since November 2016 with $0.2166 on the Intercontinental Stock Exchange (ICE), is trading at $0.2154 at 2:35 p.m.

Analysts noted that predictions of a decline in sugar production in India caused prices to rise and noted concerns that global supply problems could be triggered by the country’s shrinking sugar crop.

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

On the other hand, today a fluctuating course is observed in other agricultural commodities. Currently, cotton and coffee are up 0.3 percent, while cocoa is down about 1 percent.

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

DECREASE TRENDS IN PRECIOUS METALS

The downward trend in precious metals continues. Today, there is a depreciation of 0.9 percent in gold, 1.9 percent in silver and 1.4 percent in palladium.

Despite the strong recovery of the main data on economic activity in China, the fall in the prices of basic metals is striking.

In China, the manufacturing Purchasing Managers’ Index (PMI) for January came in at 50.1, beating expectations and showing that the manufacturing industry ended the contractionary trend. The country’s service sector PMI also rose to 54.4.

Despite the data pointing to a recovery in economic activity, copper fell 1 percent, aluminum 1.7 percent, zinc 1.2 percent and nickel 1.6 percent. The price of a barrel of Brent oil decreased by 1 percent. (AA)