Update as at Thursday 17 August 2017
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2016 Season Pool Prices (Pool valuation as at 10 August 2017)
2017 Season Pool Prices (Pool valuation as at 10 August 2017)
Forward Season Pool Prices (Pool valuation as at 10 August 2017)
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.
- 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.