Tuesday, 16 November 2021
Raw sugar prices gained enough momentum last week to penetrate the 20 USc/lb level for the first time in over a month, supported by a lower sugar mix in the final stages of the Brazil harvest.
The second half of October UNICA (Brazilian Sugarcane Industry Association) report was released mid-week, revealing 128 Brazilian mills had closed by 31 October with another 87 expected to shut down by mid-November, leaving only 47 operational beyond then.
The Indian government is reported to have raised the price of ethanol paid to mills to ensure that a sufficient amount of cane is diverted away from sugar production. This decision is likely to be a reaction to sustained high ICE 11 prices.
The Australian Dollar (AUD) softened last week, led by poor local labour force data as well as further risk-off sentiment from US inflation concerns. The AUD traded from highs on the Tuesday of 74.31 US cents down to a low of 72.78 US cents on the Friday.