Blog

Sugar

• Raw sugar futures traded higher over a 200-point range in the last month, with the prompt Jul-21 contract making life-of-contract highs above 18 USc/lb.
• There is speculation about shortfalls in the Brazilian crop, after the latest UNICA report showed a slower crush in Brazil’s CS region.
• The Brazilian crop output will be the focus going forward, with possible changes in output, sugar mix and yield key drivers for prices.

Macro/currency commentary

• The AUD has chopped over a USD 0.7688 – 0.7889 range tin the past 30 days, as global reflation returns to the radar against strong commodity prices.
• Iron ore and oil prices have led the charge for commodity currencies this year, as demand heightens for natural resources.
• Locally, the RBA upgraded its forecast for employment and kept interest rates on hold.