Blog

Sugar

• There was a record July19 contract expiry delivery, as a remarkable 2.1 mmt of sugar was delivered to the tape.
• Brazilian mills continue to minimise sugar output as demand for ethanol and firm US corn prices support ethanol prices.
• The Indian Government is set to approve another tranche of 5mmt of exports, with weather being the key driver for the region.

Macro/currency commentary

• A weaker USD in the face of an impending historical US interest rate cut by the US Federal Reserve has seen the AUD bounce back above USD 0.70.
• RBA July meeting minutes are due out this week with the market looking for hints around the timing of another interest rate cut at home.