Tuesday, 20 July 2021
The Oct21 ICE 11 contract bounced off a low of 16.73 USc/lb last Tuesday before trading up over 100 points to a high of 17.78 USc/lb on Friday, closing last week up 2.5%.
Brazilian crop progress for the second half of June was released by UNICA last Monday, with cane crush figures coming in above expectations due to quality production weeks in the Sao Paulo state. Despite Brazil's cane and sugar production lagging last season by approximately 8%, the area harvested is actually 2.5% ahead, implying the current crushing season will likely end relatively early.
Markets continued to trade in a risk-off tone as the US Dollar strengthened and the Aussie Dollar (AUD) underperformed after the extended Sydney lockdown was expanded to Melbourne. The AUD slipped from its high of 75.83 US cents last Tuesday down to a low on Friday of 73.92 US cents.