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Weekly Market report 6 January 2015
SUGAR MARKET UPDATE Sugar finished 2014 on the back foot and has started 2015 in the same way. Life of contract lows were made in Mar at 14.07 and a small reversal ensued following the straight line move from 15.20 just before Christmas. The Indian crop is moving along at a very swift pace, especially compared to last year, with the ‘failed monsoon’ chatter looking more like hope than reality. There is also plenty of talk of export subsidies, with Pakistan beating India to announce first. On a slightly more...Read full article -
Weekly Market Report 18 November 2014
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...Read full article -
Weekly Market Report 11 November 2014
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...Read full article -
Weekly Market Report 4 November 2014
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 ...Read full article -
Weekly Market Report 28 October 2014
SUGAR / CURRENCY MARKET OVERVIEW: March 15 sugar spent last week drifting lower on poor volume sitting comfortably within the 15.51 to 17.25 range we have been in since the beginning of September. These are levels where trade is not getting facilitated: consumers had a chance much lower a few weeks back during the last weeks of the Oct contract, and producers have time on their side given the length of the Mar contract. We are somewhat bearish on prices at these levels following the Brazilian election. AUD has ...Read full article -
Weekly Market Report 21 October 2014
SUGAR MARKET OVERVIEW Following the volatile October expiry, prices have settled into a small tight range on low volumes. Producers seem happy to sell approaching and over 17c, and we suspect anyone that needed to buy sugar would have taken advantage of the large slide in prices pre expiry. It seems to us, no one is in a hurry to transact business right now. Similarly, we are looking for trade flow surpluses to dominate in the first half of the 2015 and are looking for Mar/May spread to widen out further into c...Read full article