86 words / less than a minute reading time

  • The Brazilian Real (BRL) has recently hit record lows vs. the US Dollar.
  • This affects the sugar market because sugar mills in Brazil (the world’s largest raw sugar exporter) hedge in USD but recognise returns in BRL.
  • Although sugar prices in USD have been capped recently, comparative returns for a Brazilian mill have been increasingly tempting.
  • We have therefore seen a large amount of futures market selling from Brazilian mills as they take advantage of the FX weakness.

July 2020 No.11 Returns

undefined