• Weekly Market Report 28 May 2018 28 May 2018

    Sugar

    • There have been positive signs for raw sugar futures in the past two weeks, with price action showing consecutive gains across the fortnight.
    • The latest Commitment of Traders report continues to see a reduction of the net short position.
    • Potential Indian stockpiles and weather in CS Brazil will hold much of the market’s attention.

    Macro/currency commentary

    • The AUD has consolidated from USD 0.7800–0.7450 over the past month, to the delight of exporters.
    • US ten-year yields have dipped below the key 3% level, which should help sustain the AUD around USD 0.7550 in the near term.
    • Friday’s release of US Non-Farm Payrolls data will be the highlight of this week’s calendar, with no key local data due out.
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  • Weekly Market Report 14 May 2018 14 May 2018

    Sugar

    • New York sugar week was dominated by discussions around dry weather in Brazil and global trade surpluses over the coming seasons.
    • Raw sugar prices reacted by erasing gains made in the week before.
    • The latest Commitment of Traders report shows a reduction in net short spec positioning to 150,500 lots from 161,500 lots in the prior week.

    Macro/currency commentary

    • A tough week for the AUD, which made fresh 11-month lows at USD 0.7413 before closing the week back above USD 0.75.
    • In the week ahead, the local calendar is busy, and US and China retail sales figures are due on Tuesday, with both expected to be slightly weaker than previous.
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  • Weekly Market Report 9 May 2018 9 May 2018

    Sugar

    • The recent freefall took a break last week as sugar prices found some support below 10 USc/lb.
    • The new prompt, Jul18, traded higher though eventually settled the week in arrears.
    • India is one step closer on subsidies, announcing a subsidy worth 55 INR per tonne.

    Macro/currency commentary

    • The AUD remained under pressure this week whilst US yields retreated below 3%.
    • The RBA highlighted higher-than-expected forecasts for inflation and a miss in the latest Non-Farm Payrolls data last Friday night.
    • Trade tensions continue to weigh heavily on the AUD, with Trump announcing overnight that the US will withdraw from the 2015 Iran nuclear deal.
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