Blog

Sugar

• The global surplus remains at the forefront for the sugar market.
• There is potential to see the lower end of 10.50 USc/lb, but at what point do we bounce?
• Ethanol parity is seemingly capping the market out at 12 cents.
• Risk, as has been the case for the majority of this year, remains to the downside.

Macro/currency commentary

• Despite the trade war being played out by the US and China, the AUD keeps bouncing off USD 0.7350.
• There remains no good new news for the AUD, as it gyrates in the USD 0.7350–0.7450 range.
• Domestic data more recently has been positive, with the RBA keeping rates on hold this week.