ICE Sugar rallies 35 cents (1.8%) deep into the session, trading at $19.83 per pound.
United States's Initial Jobless Claims new data released of 230,000 below its previous figure.
On the flip side, highly important Initial Jobless Claims data from United States beat analyst expectations of 230,000 with a reading of 230,000. United States Crude Oil Inventories released earlier showed a marked improvement to -5.19 million from the preceding data of -12.58 million, but fell short of the -3.31 million figure forecast by a consensus of market analysts.
Meanwhile, United States Cushing Crude Oil Inventories released yesterday at 15:30 UTC with a figure of -373,000, while the previous figure was -415,000.
Chart analysis indicates Sugar broke through the $19.59 resistance and climbed above it 24 cents; next resistance level is at $19.7. Trend and momentum analysis indicates that the Sugar future made an initial breakout above its 21 day Simple Moving Average at $19.62, a potential indicator of a newly emerging bullish phase. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $20.22, thereby suggesting that ICE Sugar is becoming overvalued.
Notwithstanding the Sugar future's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
This rally in Sugar's price coincides with other Softs as Cotton is up 1.65% to $83.18. Cocoa is up 0.84% to $2,513.
While ICE Sugar is appreciating, other Softs are comparatively not doing so well — Coffee is trading around $158.35 (down $1.85).
Furthermore, the market is looking at United States Producer Price Index figure is projected at 0.2%. It previously stood at 0.2%; data will be released tomorrow at 13:30 UTC.
23 days ago Sugar reached a significant high of $20.29 but has consequently lost 4% since then.