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Weekly Market Report 27 August 2014
SUGAR MARKET OVERVIEW October sugar broke through 16c last week and has been unable to recapture this level. Even after a UNICA downgrade to the Brazilian crop (546 mt), the prices remain under pressure. Excess stocks in Thailand and benign weather in Brazil and India is weighing on prices. For the first time in a while, there are some positives on the radar. Prices have moved low enough to be facilitating trade, Brazilian producers have been seen washing out of some sugar sales to switch to ethanol and there is s...Read full article -
Weekly Marketing Report 19 August 2014
SUGAR MARKET OVERVIEW The Brazilian campaign is continuing at rapid pace, with a few rain delays that could add to a the likely short tail later on. ATR levels are higher and the sugar mix has remained elevated despite sugar trading under ethanol parity. The Indian monsoon is somewhat patchy with flooding in UP and drought leading to seed shortages in Tamil Nadu. Maharashtra mills are expecting to crush an additional 9mt of cane (+12%) All of these factors are continuing to weigh on the outlook for sugar price ...Read full article -
Weekly Market Report 11 August 2014
SUGAR MARKET OVERVIEW Following the large downward reversal on Monday post the Cosan terminal, October sugar remained under pressure for the rest of the week. The largest mover by far was the Oct/Mar spread which traded from a low of –1.85 to a high of –1.61. Fundamentally, the excess supply and lack of demand seems to be the sole focus of the market at the moment, with either the flat price needing to move lower or the spread to weaken further or both to help solve the problem. Friday saw a small bounce (+9) ...Read full article -
Weekly Market Report 5 August 2014
SUGAR MARKET OVERVIEW Sugar moved lower last week, breaking through the bottom of the range, falling every day to close at 16.35. A fire at the Cosan terminal on Sunday afternoon was bought under control later that day, causing damage to two sheds, and a conveyor belt. With the Copersucar fire (the terminal next door) fresh in people's memories, the market opened up 4% on Monday morning, but gains faded quickly as the true damage was revealed. The Oct/ May spread continues to weaken, as a glut of production from B...Read full article -
Weekly Market Report 28 July 2014
SUGAR MARKET OVERVIEW Sugar traded the week over a tight range on much reduced volumes. Only 50,000 lots traded between Oct14 and Mar14 on Friday night. The COT numbers now have the spec community sitting at a small short (–12,500 lots). The specs have been consistently paying the market this year, selling at the bottom to consumers and buying at the top from the producers. The market is beginning to focus on the possibility of El Nino not coming at all this year and it is expected this will keep pressure firmly...Read full article -
Weekly Market Report 21 July 2014
SUGAR MARKET OVERVIEW October sugar moved slightly lower (–0.10 USc/lb) over the week with Oct closing close to its lows at 16.97. Solid commercial buying and perceived demand from Asia just under current market levels has slowed the move lower. The real movers, however was further out the curve, selling off on reduced fears of an El Nino event affecting the BRL crop and favourable weather conditions in India and Thailand. The Oct/Mar Spread, rallied from –180 to –137. This coming week we have the Kingsman c...Read full article