• The market has struggled to break through $320/mt recently, although market sentiment is negative. 
  • Despite low prices farmers are not getting the correct signals to plant less cane and beet in key countries. 
  • The re-election of Modi in India opens up the possibility of further subsidised Indian exports in 19/20. 
  • While Thailand has surplus white sugar that needs to be sold before the end of 2019, competing vs regional refiners. 
  • We are therefore reliant on the weather to break the current surplus cycle.

 

Oliver Chapman

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