Analyst Insights

• Wheat uses vary around the world, whether it be to feed people, livestock, or a small number of industrial uses.
• Many processes, often for human consumption, need individual types of wheat (hard or soft), with tailored quality specifications to meet the process’ needs.
• This Explainer will focus on the differences between ‘hard’ and ‘soft’ wheat.

• Grains rallied in almost all geographies last week, with Brazilian Corn being the only exception.
• This came in response to the news of China’s large supply. 
• The momentum with the harvests, coupled with China’s strong purchasing appetite, is positive for the market.

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• The cane molasses market has turned full circle on India in the last 12 months, from one of the largest exporters of cane molasses, to a ban on exports from the key state of Maharashtra, and then back to being a pivotal supplier to the world market.
• The unexpected ban on cane molasses exports from Maharashtra in December 2019 effectively removed over 300k tonnes of cane supply from the international market (8% – 9% of the total global export supply).

Daily Market Price Update and Commentary 18th September 2020

• The queue in Santos is reducing due to better efficiency and also less anticipated nominations.
• The result is T-12A terminal being plugged and others at the risk.
• Although 590kmt were nominated this week, the volume is expected to sail within the month.

Daily Market Price Update and Commentary 17th September 2020

• With the No.11 futures around 12c/lb this week, raw sugar export parity sits well within negative territory; 19.5c/lb is where we’ll see unsubsidized Indian raws exports for 2020/21 become competitive. 
• The No.5 futures have kept their range this week; $478/mt is where we’ll see unsubsidized Indian low-quality white exports for the 2020/21 season become competitive. 
• The USD/INR FX has been stable this week and does not influence the attractiveness of exports. 

• American sugar production could reach record levels in 2020/21.
• This means the Americas should have a better refined sugar supply, with the US recovering from last year’s frost-battered beet crop.
• If this materialises, Mexico’s import quota could reduce, causing its smallest import flow to the USA since 2009/10.

Daily Market Price Update and Commentary 16th September 2020