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QSL Weekly Market Update

Monday, 12 June 2017

After a few weeks of major downward movement, the sugar market finally had a week of consoliation.

The July 17 expiry is only a couple of weeks away now, so it is likely that a part of the Spec sold positions may potentially need to be bought back before then.

The scale of any return to Brazilian production to ethanol from sugar after the recent market fall is also a factor which will become clearer and could provide some support in the short term.

On the flip-side, each week is bringing more data supporting a surplus sugar market for 2017/18 (mostly unsold by producers on the sugar futures market yet) and we know that the speculators have more firepower to sell further than their current position.

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