Raw sugar prices jumped more than 3% in mid April to record 7-week highs, underpinned by bad weather for crops in Europe as well as Brazil, and positive macroeconomic indicators.
Global forecasts for 2021/22 are now for a smaller sugar surplus of around 2.9 million tonnes, primarily due to recent crop downgrades in Brazil.
It is now anticipated that Brazil’s production may drop from 38.5 million tonnes last season to between 31–33 million tonnes, with the possibility of further reductions in forecasts if rainfall does not improve.
The AUD has continued to trade in a USD 0.75–O.78 range, with no signs of moving out of this range.
The RBA’s April meeting provided little news to influence the market.
Positive US news on the COVID-19 vaccination front boosted risk sentiment, with the vaccine rollout ahead of target.