After closing at $19.63 yesterday, the Sugar future opened today at $19.7, to be greeted by bearish sentiment that overshadowing today's price action. Irrespective of the bearish mood, the Sugar future retains a distinct $19.45 to $19.72 daily range.
Sugar is currently trading at $19.55 following the release of Core PCE Price Index (MoM) (Oct) data from the United States.
Following a previous reading of -3.69 million, Crude Oil Inventories in United States released yesterday at 15:30 UTC fell short of the -2.76 million figure expected by analysts with an actual reading of -12.58 million.
In contrast, positive data for Sugar reported earlier when highly important Initial Jobless Claims data from United States beat analyst expectations of 235,000 with a reading of 225,000.
Amid the market gloom, United States Core PCE Price Index (MoM) (Oct) came out at 0.2, while a consensus of analysts was expecting 0.3.
Sugar made an initial break below its 5 day Simple Moving Average at $19.48, a possible indication of a forthcoming negative trend. On the other hand, note that ICE Sugar could begin to recover as it approaches significant support, now 12 cents away from $19.43. Dipping below could be an indication that further losses are ahead.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts the ICE Sugar future to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the the Sugar future is expected to attract significant bearish sentiment in the coming days.
Though the ICE Sugar future has been dropping, other Softs have been performing better: having closed the previous session at $84.61, Cotton is up 2.15% today to currently trade at around $86.43. Coffee increases 1.74% to trade around $172.85. Cocoa is up 0.88%.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as as things stand, upcoming United States Non Farm Payrolls data is projected to fall short of market expectations with newly published data of 200,000, following on from the preceding figure of 261,000. New data is set to be published tomorrow at 13:30 UTC.
Furthermore, United States ISM Manufacturing PMI (Nov) scheduled to come out today at 15:00 UTC. United States Unemployment Rate is expected tomorrow at 13:30 UTC.
The ICE Sugar future reached a significant high of $20.29 around 16 days ago but has lost 3.25% since then.