REPORTS

The technical picture is still looking rather weaker. However, last three sessions have been all “inside sessions”, which led to consolidation. With a lot of uncertainty ahead of Brazil harvest and the Indian policy, market is currently uncertain and lacks a clear direction. 17.84 c/lb is the critical support level that the market has been discussing for a while. It’s the recent low, traded on Dec 15th, after which the market rallied and recently has been coming down. Breaking this level could cause further losses on sugar prices, perhaps back to 14-15 cents levels. For resistance levels, we can consider the recent high at 19.84 c/lb along with the 200-DMA at 20.01 c/lb.

The macro market is focused on the much-expected Fed meeting today. Wall Street stocks were generally higher today on the back of the expectations of a rate hike. According to Reuters, traders have priced over 90% chance of a quarter point rate hike, evidenced by the Fed fund rates. With strengthening economy and labor markets almost reaching full employment, the likelihood of the hike is high. Not only the rate hike decision, but also the economic forecast that will be released will be closely followed.