Raw Sugar prices
● Overview: Raw sugar futures suffered under the macroeconomic headwinds of global inflation and recessionary fears last week. The prompt Oct22 ICE 11 contract traded from a high of 18.52 USc/lb on Tuesday, down to a low of 17.89 USc/lb on Wednesday before closing the week at 18.15 USc/lb.
● Brazil: Brazilian petroleum giant, Petrobras, announced a further reduction of wholesale gasoline prices by 0.25 BRL/litre (7%) on Friday. The reduction comes as West Texas Intermediate (WTI) crude oil traded to a two-week low and closed the week down 5% at $US88.30/barrel, driving ethanol parity sub-14 USc/lb equivalent. Brazilian President Jair Bolsonaro has also stated that he will not reinstate taxes on gasoline if he is re-elected in October, indicating that sugar is unlikely to receive any strength from ethanol prices in the foreseeable future.
● India: The Indian monsoon continues to operate on two speeds, with both the Maharashtra and Karnataka states receiving well above average rainfall while the Uttar Pradesh state's cumulative rainfall is tracking well below average. However, the India Meteorological Department has stated it expects showers in September to provide some relief.
