ICE Sugar futures extend losses following Brazil's elections

Tuesday, October 28, 2014

ICE sugar futures plunged in heavy trade yesterday as the Brazilian real dropped to its lowest level in nearly six years after the re-election of President Dilma Rousseff in Brazil. Furthermore, Mexico and the United States reached an agreement yesterday to avert potentially steep duties on Mexican sugar imports to the US. The deal could resolve a month’s-long argument that raised concerns about a possible escalation into a major trade war, according to Thomson Reuters. 

ICE sugar front month futures 

SBH5 Comdty (SUGAR #11 (WORLD) M 2014-10-28 08-54-55

Asian equity markets were fairly mixed overnight. The Nikkei index reversed and slid lower by 58.8 points (-0.38%) towards 15,320, while the Hang Seng index rebounded strongly and climbed more than 370 points (+1.62%) above 23,500. China’s industrial profits increased by 0.4% y/y in September compared to a -0.6% decline in August.

Crude oil prices remained under pressure in early trade this morning. The WTI front month futures tested a low yesterday at 79.44 and finished the session at 81.00. This morning, WTI futures posted fresh losses to retest $80 per barrel. Brent front month futures slid lower in early trade heading towards $85 per barrel, ahead of the release of the weekly API oil inventories figures.  

Brent front month futures

COZ4 Comdty (BRENT CRUDE FUTR  D 2014-10-28 08-55-23

It is a busy day on the macroeconomic front, with the main focus turning to the release of the US durable goods and new orders in September, as well as Richmond Fed business index and consumer confidence in October. Investors will be keeping an eye on the US Federal Reserve meeting that begins later in the day for clues about the timing of any interest rate hike.

Events for today:

1230

US

Sep

Durable Goods & New Orders

1400

US

Oct

Richmond Fed

1400

US

Oct

Consumer Confidence

 

All times UK Local Time

More from: Myrto Sokou