Blog

SUGAR MARKET UPDATE March 15 sugar opened the week lower, following the Brazilian election, squeezed for the next two sessions and closed the week near its lows. Whilst the recent lows of 15.90 have held, a test of these to contract lows at 15.50 seem on the cards. Volumes have been poor, highlighting that these levels aren't facilitating trade. As we have spoken about previously, here and now, there is no rush. Producers have months to run on this current contract (and generally speaking are getting a boost from ...

SUGAR MARKET UPDATE March 15 sugar pushed lower on the week, breaking the 15.90 support and not looking back. The low was made on Thursday, with Friday seeing a short squeeze, following Petrobras’ decision to raise gas prices 3%, and diesel 5%. Post election meetings had Petrobras looking for an increase of 10%, so on the margin we see little respite for producers with input costs (diesel) rising more, and no ability to move production over to ethanol until next season. To add to the bearish weight out of Brazil...

SUGAR MARKET UPDATE March 15 sugar squeezed higher last Tuesday in what appears to have been just stop loss buying. The rally continued slightly further on Wednesday, and fell away to have all the gains for the week, erased by Monday night this week. Volumes have been moderate (at best). As we have mentioned before, producers are not in a hurry to sell given the length of the contract and consumers are looking at the fundamental backdrop of a stronger USD/BRL, a larger Indian Crop and rain in Brazil and are let...