• Weekly Market Report 19 December 2017 19 December 2017

    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.
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  • Weekly Market Report 11 December 2017 11 December 2017

    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.
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