• QCS Market Report 21 November 2018 21 November 2018

    Sugar

    • Raw sugar futures continued to slip over the past week, leading to another week of losses.
    • With the recent month’s activity, the market has been as lively as ever.
    • India now moves into its most active period, with exports tipped to kick off throughout the Australian summer.
    • Following the failed attempt to break 13 USc/lb, sugar now appears vulnerable to a move lower, depending on Indian exports, which could surprise to the upside.

    Macro/currency commentary

    • The AUD had another solid week, closing near the week’s high above USD 0.73.
    • Price action was mixed early in the week, with the AUD surging into higher ground from a stronger-than-expected local employment print.
    • Paired with weaker US yields and the broader USD, the AUD continued to trade positively.
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  • QCS Market Report 1 November 2018 1 November 2018

    Sugar

    • The recent surge in raw sugar prices stalled across the back end of the week, as weaker whites and sentiment weighed on the NY#11.
    • Price action was lively for the month of October as specs helped push prices from 11 to 14 USc/lb.
    • The macro environment remains volatile, with equities and stocks giving up the past 12 months’ worth of gains.
    • Giving back recent gains following the election results in Brazil, the real has followed sugar prices lower this week.

    Macro/currency commentary

    • A choppy week for the AUD, with numerous attempts above USD 0.71 being rejected.
    • There were some key data points this week as, local Q3 CPI was received on target.
    • Local trade balances today beat expectations, helping the AUD one per cent higher to USD 0.7145, at the time of writing.
    • As always, ongoing trade issues between the US and China are never far from mind.
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