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QSL Market Update

Monday, 12 March 2018

The ICE 11 slipped below 13 c/lb mid-week, primarily driven by the news that India has increased their production estimates for the 17/18 season and the next.

Fundamentally this was not a surprise to the market, as traders have been talking up the crop for months. But to system funds who only react to the headlines, this was a massive hit to the already-large surplus and hence they sold the market.

Sugar traded to a contract lifetime low of 12.76 during the week, closing at 12.84 c/lb, 58 points down on the week.

Patience will be the name of the game for the next few months.

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