Down another 5% (or 80 points), raw sugar futures continue to slide. Weakness across the board attributed by a softening commodity complex. Camex (Brazil) postponed any import tariff announcements until next month. An increase, supportive for raw sugar prices. The latest Commitment of Traders report saw specs flip to a net short last week. The numbers suggests commercial hedgers are still underweight, buying back hedges as a buffer for producing more ethanol. Going forward, no aggressive outlook for sugar unless faced with a weather event.
A recovery back above 75 cents short-lived for the AUD. Considerable weakness in commodities helping the AUD to 5 month lows at 0.7370. As expected, the RBA left rates on hold, maintaining their neutral stance going forward. FOMC highlighted a need to continue with a June rate hike. Slowing growth considered transitory with a solid labour market and a moderate expansion in the economy. Support below 74 saw lacklustre reactions to strong US employment data and a firming Euro on Friday night. Moving forward, we see local retail sales due out this week with a handful of Chinese trade, CPI and PPI as key market drivers.
Chart Sources: Bloomberg