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Weekly Market Report 17 July 2017 17 July 2017
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- Raw sugar futures were on the back foot on Monday night after Indian import duty increases and more cuts to gasoline prices saw sugar prices crumble.
- Sugar firmed in the back end of the week, erasing Monday’s losses to settle in front.
Currency/macro comments
- The AUD was the performer of the week, surpassing USD 0.78.
- US retail sales and CPI missed market expectations, causing the USD to tumble.
- Tuesday’s RBA minutes will be monitored for changes in communications on growth and inflation.
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Weekly Market Report 10 July 2017 10 July 2017
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- Bouncing around a 13.50–14 USc/lb range all week, prices surged higher on Friday night following another gasoline price cut by Petrobras.
- A bearish fundamental backdrop makes it difficult to see upside above 14.50 USc/lb.
Currency/macro comments
- A run at USD0.77 was short lived over the past week as the AUD slipped back toward USD0.76 and firmed.
- The RBA left rates on hold and released a statement with minor dovish changes.
- USD strength was muted on softer wage growth and unemployment numbers, despite a 222k increase in jobs.
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Weekly Market Report 28 June 2017 28 June 2017
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- Raw sugar futures continued to slide over the past week.
- Very little price positive news, other than the hope for a significant weather event.
- We remain wary of a large commercial short position, which would see a wave of selling if the market was to bounce.
Currency/macro comments
- Despite a lacklustre week, the AUD managed to finish on the front foot, toward USD 0.76.
- AUD seems to have found decent support and resistance in the USD 0.755–0.765 range.
- Many question whether the Fed can continue to hike at a heightened rate and trim down their balance sheet at the same time. Price action would suggest not.
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Weekly Market Report 4 April 2014 4 April 2014
SUGAR MARKET OVERVIEW In our last report, we suggested that weather markets bring volatility. Last week’s price action supported this entirely. The previous week prices rallied strongly from the lows of 16.67 USc/lb, to the highs of 18.10 USc/lb, basis the May14 contract. Last week saw prices fall from the highs of 18.10 USc/lb, posting lows of 16.79 USc/lb by mid-week. Then, in comparatively ordered fashion, prices went on to post two sessions of moderate gains to close the week at 17.35 USc/lb. The market cont...Read full article -
Weekly Market Report 18 April 2014 18 April 2014
SUGAR MARKET OVERVIEW Sugar futures remained in choppy, sideways trading in a holiday shortened trading week, with little market news to speak of. This lack of news appears to be captivating market participants, with many believing prices will remain in the recent price range until something ‘new’ comes to light. May-14 options expired early last week, with little to write about. The May-14 futures contract expires next week, and all eyes are on the potential delivery to determine if there is in fact physical ...Read full article -
Weekly Market Report 25 April 2014 25 April 2014
SUGAR: Sideways, choppy trading remained in force for another week in the sugar market. Directionally, sugar is still struggling with conflicting drivers; negative short term and supportive longer term. News released during the week did little to help that situation, with UNICA forecasting the CS-Brazil crop at 580 mmt (expected) but with a sugar make of 32.5mmt (below expectations), but with the Indian Meteorological Department forecasting the coming Monsoon to be only ‘slightly below’ average, against expect...Read full article -
Weekly Market Report 21 July 2014 21 July 2014
SUGAR MARKET OVERVIEW October sugar moved slightly lower (–0.10 USc/lb) over the week with Oct closing close to its lows at 16.97. Solid commercial buying and perceived demand from Asia just under current market levels has slowed the move lower. The real movers, however was further out the curve, selling off on reduced fears of an El Nino event affecting the BRL crop and favourable weather conditions in India and Thailand. The Oct/Mar Spread, rallied from –180 to –137. This coming week we have the Kingsman c...Read full article -
Weekly Market Report 28 July 2014 28 July 2014
SUGAR MARKET OVERVIEW Sugar traded the week over a tight range on much reduced volumes. Only 50,000 lots traded between Oct14 and Mar14 on Friday night. The COT numbers now have the spec community sitting at a small short (–12,500 lots). The specs have been consistently paying the market this year, selling at the bottom to consumers and buying at the top from the producers. The market is beginning to focus on the possibility of El Nino not coming at all this year and it is expected this will keep pressure firmly...Read full article -
Weekly Market Report 5 August 2014 5 August 2014
SUGAR MARKET OVERVIEW Sugar moved lower last week, breaking through the bottom of the range, falling every day to close at 16.35. A fire at the Cosan terminal on Sunday afternoon was bought under control later that day, causing damage to two sheds, and a conveyor belt. With the Copersucar fire (the terminal next door) fresh in people's memories, the market opened up 4% on Monday morning, but gains faded quickly as the true damage was revealed. The Oct/ May spread continues to weaken, as a glut of production from B...Read full article