Top Commodities sugar prices news today - Impact Brazil currency fell Sugar prices down : Brazil's economy is largely dependent on commodity exports and the real has been sinking against the dollar as commodity prices have fallen. The S&P GSCI Commodity Index is down 9.4% this year. At the same time, a corruption scandal at the state-controlled energy firm Petrobras has shaken investor confidence in the Brazilian government. Investors in Brazilian markets were surprised Monday by reports that the country could face a deficit next year after 12 years of primary surpluses, potentially putting its investment-grade credit rating at risk. The real has been one of the worst-performing emerging-markets currencies of 2015.
Sugar prices fell for a second straight session Monday august 31 2015, as Brazil's
currency fell to a 12 1/2-year low against the dollar. Raw sugar for
October delivery fell 2.6% to end at 10.69 cents a pound on the ICE
Future U.S. exchange, with the Brazilian real down 1.2% recently against
the dollar. Brazil is the world's largest producer of sugar, which is
sold in dollars. When the real is weak against the dollar, it encourages
selling because more profits are repatriated in Brazil.
Still, sugar has managed to stage a recovery after falling as low as 10.13 cents a pound last week as part of a global selloff fueled by fears of a slowing Chinese economy. Sugar fared better than some commodities, because much of the selloff was fueled by momentum trading rather than traders setting up new positions to bet on lower prices.
If you talk to a trader, would you really want to be a seller at 10.13 cents a pound? , What is the downside opportunity? The lower you go, the harder it is for a new short position to come in."
sugar manages to fall below 10.13 cents a pound, it could trigger more selling because it negates last week's key reversal. A rise above 11.20 cents a pound, he said, would trigger more short covering.
Sugar staged the biggest one-day rally in more than a year Thursday, as funds rushed to cover their bearish bets in the wake of stronger-than-expected U.S. economic growth numbers.
Still, sugar has managed to stage a recovery after falling as low as 10.13 cents a pound last week as part of a global selloff fueled by fears of a slowing Chinese economy. Sugar fared better than some commodities, because much of the selloff was fueled by momentum trading rather than traders setting up new positions to bet on lower prices.
If you talk to a trader, would you really want to be a seller at 10.13 cents a pound? , What is the downside opportunity? The lower you go, the harder it is for a new short position to come in."
sugar manages to fall below 10.13 cents a pound, it could trigger more selling because it negates last week's key reversal. A rise above 11.20 cents a pound, he said, would trigger more short covering.
Sugar staged the biggest one-day rally in more than a year Thursday, as funds rushed to cover their bearish bets in the wake of stronger-than-expected U.S. economic growth numbers.
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