Blog

Sugar

• The volatility in sugar price action followed that of macro sentiment, commodities and equities.
• With very little fundamental news to hand, specs continue to push the market around following the macro environment.
• The recently expired March 21 contract settled at 17.53 USc/lb.
• Green Pool Commodity Specialists’ latest trade flows predict a small move from surplus to deficit through until Q4 2021.

Macro/currency commentary

• The reflation story helped lift the AUD to 24-month highs above USD 0.80 over the past month, before being evaporated in all but two sessions.
• Firming equities and commodity prices were the narratives driving USD weakness.
• Bond yields followed the same path as equities and commodities, though have been less talked about.
• A breakout of key new highs sent traders into a flurry and the AUD lower.
• The AUD may move higher again, given the current outlook for the economic recovery and positive local news.