QCS in-season pricing
2020 Season pool prices at AUD IPS
QCS Short Term Pool 410.77
QCS Shared Pool 2,669.45
Sugar
Follow-through weakness was seen this week as raw sugar futures continued to slide lower.
Price action was highlighted by reports of potential raw imports for China as crop expectations were trimmed.
Non-index funds sold nearly 105,000 lots to move from a net long to net short position.
Currency/macro commentary
A resurgent AUD made headway over the last week, testing highs near USD 0.77.
AUD outperformance was supported by stronger local employment data and soft US inflation data.
A scheduled US Senate vote on tax reform could give the USD a material boost into the year end.
Read full article
Sugar
Raw sugar futures struggled to hold a 15-USc/lb handle, reversing gains from the past six weeks.
The start of the Indian harvest has seen higher-than-expected estimates, adding further downward pressures.
With the Brazilian tail end likely to favour ethanol over sugar, it is unlikely to bring us back to balance.
Currency/macro commentary
Recent AUD strength has all but evaporated for the time being, as the USD returns to the forefront.
AUD has tested underlying support at USD 0.75.
RBA was unchanged in rates and commentary, with strong local retail sales highlighting AUD price action.
Read full article
