Excluding the most recent trading session, raw sugar futures have continued to slump with the soon-to-expire May18 contract settling at 10.86 USc/lb, with July not too far ahead.
This week, the 1H April UNICA report continues to see more ethanol being produced in Brazil.
In India, the export subsidy parade remains in play with the government telling mills they must export.
Macro/currency commentary
The AUD has weakened dramatically this week, as rising US treasury yields propped up the USD.
Falling from a one-month high above USD 0.78, the AUD has slid in consecutive sessions to a USD 0.7547 low on 27 April.
Paired with weaker local data, there has been little reason to suggest the AUD may draw back recent losses.
Raw sugar futures have been highlighted by spread price action with the index fund roll kicking off on Friday.
Concerns over Q2 tradeflow tightness appear to be the most prominent explanation for the recent pick up in activity.
It is well publicised that the Indian crop will be much bigger than initially expected. Milling bodies and the government will contest the size of export subsidies in coming weeks.
Macro/currency commentary
Attempts to get a handle on USD 0.77 failed this week, as the AUD finished the week in the red.
The RBA left rates on hold, with accompanying commentary noting that, despite an improving labour market, wages growth remains low and this is likely to continue for a while yet.
The AUD struggled to maintain upward momentum, finishing back below USD 0.7700.
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