Raw sugar futures continued to slump as the new prompt May19 contract finished the week down 5.1%.
The Indian Government raised the domestic price of sugar just over a week ago, as the mills’ cries for assistance seem to have been answered. Cane farmers arrears continued to grow, prompting further assistance from the government.
It is yet to be seen whether the subsidies will continue to encourage farmers to grow cane, despite the uncertainty of payments.
The AUD struggled to slow USD momentum over the back of last week, closing the week below USD 0.71.
Newswires were highlighted by US President Trump extending the tariff deadline with China, whilst reports out of the UK suggested Prime Minister Theresa May was planning to delay Brexit to delay a no-deal scenario.
A quiet start to the current week as the AUD was back above USD 0.71. Comments from US President Trump, suggesting the USD is too high, helped the AUD start on a positive note.