Wednesday, 13 February 2019
The ICE 11 raw sugar market remained in a tight 12c/lb trading range last week, with the MAR19 contract trading between a low of 12.51c/lb on Monday and a high of 12.93c/lb on Tuesday, before closing the week at 12.71c/lb on Friday. Ethanol parity has been the major driver of the price movements, while sugar prices are still lacking fundamental news.
The All India Sugar Trade Association (AISTA) has already revised down their estimated sugar production to 30.7 million tonnes (from 31.5 million tonnes), indicating a crop reduction. Maharashtra has been suffering from severe drought that may impact their cane plantations even more, as they rely mostly on irrigation.
The Aussie Dollar closed the week at 0.7090c on Friday, after starting the week at a high of 0.7284c and slowly declining to as low as 0.7074c by the end of the week. Bearish sentiment is weighing on global economic growth, with reports predicting a slowdown for Australia, Europe and UK.