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US Raw Sugar rose to a 6-year high Monday
Raw sugar futures in the US surged above $22.4 per pound in early April, the most in over six years, supported by expectations of higher biofuel demand and lower output from key producers.
Crude oil prices soared after OPEC+ announced a surprise output cut, encouraging sugarcane producers to allocate crops to more profitable biofuel blending instead of sugar crushing and limiting the sweetener supply as a result. To add, Brazil’s new federal government ended its tax exemption program for gasoline, raising demand for lower-taxed sugarcane ethanol and adding to the momentum for biofuel blending. Elsewhere, crop damage and unfavorable weather in Thailand and India pressured output projections from other major producers
Citigroup sees $2300 coming in the short term.
“Gold has found itself on solid ground so far in 2023 with prices averaging ~$1,895/oz year-to-date as the U.S. Dollar’s strength tapered and inflation abated slightly as oil came off its peaks. Citi sees see four potential macro drivers for the market here:
(1) STIR traders repricing to a significantly lower terminal rate and putting 2H’23 insurance cuts back on the table, prompting a rapid rally across the rates curve;
(2) concerns about potential systemic risk as potentially deflationary or increasing likelihood of recession, leading to investor demand for the ‘lower vol’ safe haven; (3) light positioning for gold ETFs and options heading into the March 22 FOMC; and
(4) physical gold having no counterparty credit risk.”Rabobank cutsits 2023 forecast for CBOT wheat prices from last month. It now expects $US700-$US730 per bushel.
Large Ukrainian and Russian exports continued to flood markets and suppress prices, it said.
The Black Sea grain corridor was extended but only for 60 days, meaning it will need to be renewed before the Ukrainian harvest.
In a shortened week with Easter commodities markets were highlighted by the OPEC surprise production cut sending oil prices up 6% Monday which also pu
[See the full post at: Commodity Traders Weekly Outlook: Oil and Biofuel Complex Soars Following OPEC Move]
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