Blog

Sugar

• Since the expiry of the Mar–21 contract some weeks ago, the new prompt May–21 contract has traded sideways in the 15.50–16.50 USc/lb range.
• Fundamentally, there have been very few new inputs for the sugar market other than crop updates.
• Brazil remains the key focus for sugar prices going forward.

Macro/currency commentary

• The AUD pulled back nearly 4% of gains, which saw it trade above three-year highs at USD 0.80.
• However, price action since then has underwhelmed, with rising treasury yields, a drop in equities and concerns about higher inflation keeping the market at bay.
• Attempts to break USD 0.78 continue to be rejected with technical resistance and demand.
• Locally, the economic data flows and demand for natural resources continue to float the AUD and are key to providing forward guidance.