Pool Update

Update as at Thursday 17 August 2017

The information and views expressed in this report are those of the writer and do not necessarily reflect the views of MSF
Sugar. While all care is taken in the preparation of this report the reliability or accuracy of the information provided in the document is not
guaranteed. MSF Sugar does not accept any responsibility to any person for the decisions and actions taken by that person with respect
to any of the information contained in this report. The contents of this report are copyright to MSF Sugar. Any unauthorised use, copying
or other dissemination of this information shall be considered illegal and is strictly prohibited.

2016 Season Pool Prices (Pool valuation as at 10 August 2017)

16.17.8

2017 Season Pool Prices (Pool valuation as at 10 August 2017)

17.17.8

Forward Season Pool Prices (Pool valuation as at 10 August 2017)

FS.17.8

Net AUD/T (IPS) subject to change with changes in the ICE 11 market price affecting unpriced exposures, movement in the AUD/USD exchange rate and also due to  movements in the Shared Pool.

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Major Headlines

  • Sugar prices remain under pressure as Specs add to their sold positon as a number of key technical levels are breached.
  • Sugar prices now sit below most Brazilian producers cost of production and well below the equivalent ethanol price in most regions. With 40% to 45% of the crush remaining, more cane is expected to be diverted to ethanol than initially anticipated.
  • If prices don’t make new lows in the short term, Spec are expected to once again begin to liquidate their historically large sold position.
  • There is talk that India maybe considering allowing 200k MT of imports at a reduced duty of 25% to ease tight stocks in certain states.
  • New season EU Beet plantings are expected to be higher once again, as mills provide farmers with incentives to produce beet to extend the season. Low grain prices also means that growers are expected to plant more beets.
  • The Australian Dollar has lost momentum despite a weakening US Dollar as weak commodity prices and general risk aversion due to Geo-Political events dampens the Aussie.
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