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QSL Weekly Market Update

Monday, 07 August 2017

We saw the test of 15 c/lb in the Oct 17 position (as we had outlined as a potential move in last week’s report) while intraday movements allowed the 2018 and 2019 season prices to hit highs of A$450 and A$460 per metric tonne (mt) respectively.

The outlook from here in the short term will be determined in part by the potential amount of speculator selling that may appear if we cross back down through the 40-day moving average.

The amount of buying from Chinese, Indian or Brazil buy-backs over the next few weeks in the lead up to the Oct 17 expiry will also be a factor to consider.

They’re likely to be price sensitive and may try to hold out for lower levels before coming to the market, especially if they expect more Brazilian sugar to be delivered.

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