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QSL Market Update

Monday, 18 December 2017

A stronger AUD and a continuation of last week’s spec-led sugar sell off continue to weigh heavily on AUD/mt prices.

2018 is now back at $400 – a long way from the $450 seen just over a couple of weeks ago! With such a rapid move in ICE11 values we expect to see the market calm down somewhat over the next week as traders wind down for the Christmas period.

The sugar fundamentals remain bearish and it appears that the speculators have landed in that camp rather than the technical/Brazil-ethanol-switch bullish story some market participants are still clinging to.

Where to for prices in 2018 remains anyone’s guess, but selling the rallies remains the mantra for now.

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