Blog

Sugar

• A relatively quiet month for raw sugar futures, with the prompt March20 contract trading in a 12–13 USc/lb range following the October19 contract expiry.
• Trade flows remain balanced in the near term, with many analysts expecting a global deficit from Q2 2020 and beyond.
• Near-record short spec positions have also helped keep prices afloat above 12 USc/lb.
• While there is support for prices at current levels, large stockpiles in India and China are keeping the market at bay.

Macro/currency commentary

• A recovery in the AUD was short lived as local issues outweighed weakness in the USD
• Trade uncertainty continues to weigh on the AUD.
• The RBA remains in play, with the latest meeting minutes indicating a case could be made to reduce interest rates.