You are here

QSL Monthly Market Report

Monday, 13 November 2017

During the past month the sugar market traded on the higher end of the recent 13-15 c/lb range and we finally saw the AUD/USD move back down to around 0.76.

Consequently, AUD/metric tonne (mt) returns for 2018, 2019 and 2020 Seasons have all recovered to levels back above the long-term average, reaching highs of A$440/mt, A$450/mt and A$460/mt during the month respectively. 

Sugar was supported for two key reasons – Brazil’s switch to ethanol from sugar, and speculators buying back around 3 million mt of their sold positions. 

With the recent run up in oil prices to around $60 per barrel, Brazil’s latest UNICA report showed that millers are making the switch to ethanol, with the sugar mix now at below 44%.

Brazil’s Sugar Week was held last week in Sao Paulo, with some observers saying that it could have been more correctly called ‘Ethanol Week’. Most analysts are marking down their Brazilian sugar production estimates accordingly. 

Please click here to read our full report.