• After struggling to maintain levels above USD350/mt for the last 3 months the front month contract has made decisive moves upwards in the past couple of sessions. 
  • This has followed an announcement from the Indian government that the domestic price would be raised by INR2,000/mt. 
  • Effectively increasing the level that exports from India breakeven by close to USD30/mt. 
  • The market is still in surplus and there is currently no fundamental reason for prices to rally through producer pricing levels and Indian raw sugar offers. 
  • However, with the weight of Indian exports having been raised higher, it is possible that the recent ceiling for the market has also moved up.  

 

 

Oliver Chapman

More from this author