Blog

Sugar

• It was a turbulent week for raw sugar futures ahead of the annual New York sugar week, with heavy fund selling leading the market into the abyss.
• Following last week’s negative price action, the market appears to have stabilised at technical support levels near 11.70 USc/lb.
• As a bounce back above 12 USc/lb looms, large Thai producer pricing likely sits above 12.50 USc/lb, capping too much optimism.

Macro/currency commentary

• The AUD capped off a big week below USD 0.70. The local unit remained under pressure, with strong US data and no policy change from the RBA.
• Looking ahead, markets will remain cautious as the trade war continues to swing prices around, based on rhetoric.
• Thursday sees the local employment report for April, which will be key for the RBA’s meeting next month.