A lack of convincing fundamental factors in the raw sugar market appeared to cause the ICE 11 market to trade in a choppy fashion across the week as speculators, rather than commercials, influenced the market. The prompt March 2022 contract traded to a high of 18.56 USc/lb then falling to below 18.00 USc/lb making a low of 17.86 USc/lb, before recovering and closing the week at 18.23 USc/lb.
Economic growth has all but ceased in Brazil as the Central Bank attempts to control the pandemic-driven inflation with some of the most aggressive rate tightening cycles in the world. The Central Bank of Brazil raised interest rates by 150 points as anticipated last Wednesday, dragging the rate from 9.25% up to 10.75%. The Brazilian real was trading at $5.33 USD/BRL at the time of writing this market report (8 Feb 2022).
Report current as at 8 February 2022.