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SUGAR Despite continuing to fall week on week, prompt raw sugar futures have found decent support at 17 USc/lb. In the following sessions, prompt May-17 managed to test 18 cents before a slight correction to current levels sees the market largely unchanged near 17.70 USc/lb. In Brazil, the Government is expected to raise CIDE tax on gasoline which will provide sustenance to domestic sugar prices and ethanol. In India, the arm wrestle between producers and government persists. Domestic prices have drifted off, with...

SUGAR A weak-kneed run in to expiry saw March-17 fall 169 points. Rolling off the board at 19.31 USc/lb, expiry was highlighted by a single receiver of 1.2 million tonnes. Prices appear to have stabilized overnight, prompt May-17 bouncing off back into positive territory. With March-17 expiry out of the way, attention returns the fundamental backdrop – India, China and Brazil – hanging over the market. A mixed start for Brazil saw latest UNICA report showing 127 kmt production at the end of February – prelim...

SUGAR A remarkably weak month for raw sugar futures as prompt May-17 fell 230 points (18.50 – 16.12 USc/lb). Spreads have been savaged as the sharp fall in flat price reflects a market moving back into surplus. The weakening spreads have also contributed to the large speculative exit as it remains too expensive for investors to roll positions down the board. As Brazil begins their harvest, we expect ethanol prices to dip on the natural increase in supply. Anhydrous ethanol parity just below 15 cents may raise c...