Sugar prices surge to two-month highs
Crude sugar prices rallied on Wednesday to near two-month highs in global markets amid uncertainty about Indian supplies due to severe drought conditions.
Reuters reported that the drought led to the closure of several Indian sugar factories, which could lead to only 700 thousand tons of exports this season, far below the usual quota of a million tons.
Additionally, weather agencies expect drought in northern and eastern Brazil to negatively impact sugar products this season as well.
On trading, crude sugar futures due in March rose 1.12% to 20.7 cents a pound as of 16:45 GMT, approaching a record high at 20.72 cents.
White sugar futures due in March also rose 0.9% to $546.3 a ton.
Wall Street little changed before Fed's minutes
Most US stock indices were little changed on Tuesday ahead of the Federal Reserve’s latest meeting minutes.
US President Donald Trump recently announced plans to impose 25 tariffs across a year on automotive, chips and pharmaceutical imports.
Later today, the Fed will release the minutes of its January meeting, and might include clues on the path ahead for policies.
On trading, Dow Jones fell 0.2% as of 17:05 GMT to 44464 points, while S&P 500 rose 0.1% to 6134 points, as NASDAQ added 0.1%, or 5 points to 20048 points.
Oil prices climb for third straight session
Global oil prices rose in American trade on Wednesday on track for the third profit in a row amid growing concerns about supply disruptions from the US and Kazakhstan.
Later today, initial data on US crude stocks will be released from the American Petroleum Institute, expected to show a buildup for the fifth week in a row.
Prices
US crude rose 1.3% today to $72.61 a barrel, with a session-low at $71.71.
Brent rose 1.1% to $76.56 a barrel, with a session-low at $75.76.
On Tuesday, US crude rose 0.55%, while Brent added 0.7%, moving away from two-month lows.
Global Supplies
A drone attack on southern Russia led to disruptions in Kazakh crude supplies to the global markets, and impeded exports.
The attack reflects mounting tensions and concerns about the stability of global supplies, especially as these pipelines are highly vital to shifting oil from Central Asia to the European markets.
A Russian official said a Ukrainian drone attacked a Russian pipeline that pumps 1% of global crude supplies.
The damage could reduce Kazakh oil supplies by 30% and could take two months to fix.
And in the US, cold weather is threatening oil supplies, with experts expecting North Dakota oil production to fall by nearly 150 bpd.
US Stocks
The American Petroleum Institute will release initial data on US crude stocks later today, expected to show the fifth weekly buildup in a row, while tomorrow, the EIA will release the official report.
Bitcoin holds above two-week trough amid tepid sentiment
Bitcoin rose on Wednesday for the first time in four days, holding its ground above two-week lows amid a tepid sentiment that dominates the markets with US 10-year treasury yields advancing.
Recent bullish remarks from some US monetary policymakers raised doubts about the odds of a Fed rate cut in the first half of the year, with investors now waiting for the Fed's meeting minutes later today to gather more clues.
Prices
Bitcoin rose 0.9% at Bitstamp to $96,430, with a session-low at $95,011.
Bitcoin lost 0.25% today on track for the third loss in a row, plumbing a two-week trough at $93,340 on risk aversion.
Crypto Market Value
The market value of cryptocurrencies rose over $55 billion to a total of $3.295 trillion.
US Yields
US 10-year treasury yields rose 0.3% today, extending gains for the second session and hurting the risk appetite.
San Francisco Fed President Mary Dale said on Tuesday the path of rate cuts this year remains unclear due to uncertainty about monetary policies.
She added that the US economy has shown positive momentum, but future decisions will depend on data and the stability of inflation.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Fed rate cut in March stood at a measly 2.5%.
Fed’s Minutes
Now investors await the Federal Reserve’s January meeting minutes later today, at which the Fed voted to hold interest rates unchanged at 4.5% following three consecutive rate cuts between September and December 2024.