Under the pump for a large part of the week, sugar prices staged a modest recovery on Friday to end the week 20 pts higher at 13.41 USc/lb.
Price action suggests sugar is ‘too cheap’ below 13 USc/lb.
Producers remain heavily underpriced and specs are very short.
Currency/macro comments
Unsustained USD pressure saw the AUD finish up the week above USD 0.79, despite spending some time near USD 0.78
Stronger-than-anticipated retail sales and manufacturing data helped the USD firm early in the week, but all gains were retraced by the end of the week after a dovish tone from FOMC meeting minutes.
A quiet week on the economic data calendar locally and overseas.
A run at 15 USc/lb was rejected this week as the market fell on lighter volume.
Ethanol parity rose slightly over the week, whilst dryness and uneven rainfall in India caused some concern.
The Indian government is considering another change to its import tariff, which may allow 300–500kt to be imported at 25 per cent of the duty.
AUD:
USD bounced back following a decent US payroll print on Friday night.
Gradually weaker on the week, the AUD maintained a USD 0.7900 handle, despite a dip below 0.7900 following US payrolls.
The RBA left rates on hold as expected, though explaining that a higher currency would see a slower pick up in economic activity and inflation going forward.
If QCS is the marketer for all or some of your GEI sugar and you would like to forward price online, please contact us to arrange access to the Pricing Portal.