ICE Sugar is grinding lower from $18.38 to $18.12 per pound, shedding 26 cents (1.41%) today.
Amid the market gloom, United States Services PMI released today at 13:45 UTC with a figure of 46.6, while the previous figure was 49.3. United States Composite PMI came out at 47.3, while a consensus of analysts was expecting 49.3. United States Manufacturing PMI released today at 13:45 UTC with a figure of 49.9, while the previous figure was 52.
Sugar made an initial break below its 50 day Simple Moving Average at $18.23, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $18.13 currently serving as support. If price action breaks below, the next Fib hurdle is $17.96. In contrast, ICE Sugar could begin to recover as it approaches significant support, now 12 cents away from $18.24. Dipping below could be an indication that further losses are ahead.
Looking forward, the ICE Sugar future is poised to extend its strong downtrend and continue declining.
In the meantime, negative performances are also seen in other Softs as Cotton is trading around $76.13 (down $3).
Though the ICE Sugar future has been dropping, other Softs have been performing better: having closed the previous session at $2,306, Cocoa is up 0.56% today to currently trade at around $2,319.
Looking ahead, ongoing depreciation may be prolonged as United States Consumer Confidence projected to come out at 106.5 — worse than previous data of 108; data will be released tomorrow at 14:00 UTC.
The ICE Sugar future hit a significant low of $17.4 around 2 months ago, but has since recovered 5.63%.