| 
June 30, 2023
While ICE Sugar in the midst of an 8 day downtrend, Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. After closing the previous trading day at $22.08, the Sugar future is up to $22.39 per pound, which makes for a move of 1.4%/31 cents today.
Sugar is currently trading at $22.39 following the release of Core PCE Price Index (MoM) (May) data from the United States.
This move comes while some more positive signs for Sugar are out as highly important GDP data from United States beat analyst expectations of 1.4 with a reading of two. United States Initial Jobless Claims beat analyst expectations of 266,000 and the previous reading of 265,000 with new data of 239,000.
Nevertheless, Pending Home Sales in United States fell short of market expectations (-0.5%) with a reading of -2.7%, continuing the decline from the previous figure of -0.4%.
Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to momentum evaluation, the Relative Strength Index indicates Sugar is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. According to asset volatility analysis, the ICE Sugar future's lower Bollinger Band® is at $22.21, indicating that the market is oversold and fertile for new buyers.
Overall, the technical outlook suggests the ICE Sugar future is likely to remain muted for the immediate future, with no clear-cut direction.
A look at other Softs also shows upside as Cotton is up 1.72%. Cocoa is up 0.71%.
Sugar is now trading 17.12% below the significant high of $26.64 it set around a month ago.
