The prices of raw sugar futures on the ICE are currently trading at their lowest level in 12 years, as the crude oil price continues to fall and is weighing on almost all other commodity markets.
Traders are concerned about the drop in demand for ethanol, causing Brazil to produce more sugar. Selling funds and technical sales are also causing the sugar market to collapse. Resistance lines are repeatedly broken on the futures exchange.
The current currency weakness of the Brazilian real is also contributing to the bearish sentiment as raw sugar is traded on the world market in US dollars, which providers now urgently need as a safe haven in the crisis.
Source
Hansa Terminhandel GmbH
