While the commodity market was negative today, the price of sugar hit its highest level since November 2016 at $0.2166.
The positive trend seen in the commodity market last week gave way to volatility this week. Today, while most commodity prices, especially wheat, are down, the price of sugar continues to rise.
While global markets’ risk appetite decreased ahead of the US Federal Reserve’s (Fed) monetary policy decisions to be announced tomorrow, the commodity market is following a negative course due to the appreciation in the dollar.
According to the pricing in the money markets, it is certain that the Fed will raise interest rates by 25 basis points tomorrow, while the directions in the policy text and Fed Chairman Jerome Powell’s statements are of great importance.
Analysts pointed out that uncertainties about where the Fed will stop the interest rate hike in the markets continue to have an impact on asset prices, and said that this issue is expected to be clarified with tomorrow’s meeting.
Despite the negative course in the commodity market, the price of sugar, which hit the highest level since November 2016 at $ 0.2166 on the Intercontinental Exchange (ICE), is trading at $ 0.2154.
Analysts, who reported that the predictions that sugar production will decrease in India caused an increase in prices, noted that there is concern that global supply problems may be triggered by the decrease in sugar yield in the country.
Analysts stated that India is the world’s largest sugar producer and Brazil is the world’s largest sugar exporter, so developments in these two countries have an impact on prices.
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