Analyst Insights

• The EU’s FuelEU regulation for shipping equates biofuels to fossil fuels.
• The bloc argues that this will prevent emissions from land use change and biodiversity loss.
• But ethanol producers on both sides of the Atlantic are taking legal action.

• The week was mainly neutral for wheat and corn.
• The latest WASDE report painted a picture of high grains stocks.
• However, USDA figures differ greatly from official estimates in Argentina and Brazil.

• US sugar sales and planting for next season are progressing slowly.
• High cocoa prices and stubborn inflation are slowing demand for products.
• The USDA raised projections of high-tier sugar imports amid Mexico’s ongoing production issues.

Daily Market Price Updates and Commentary

• Both No.11 and No.5 sugar futures have weakened over the past week.
• Speculators could be behind this, opening a number of short positions.
• The K/K white premium has strengthened.

• PTA pricing constrained by high inventory despite improved fundamentals.
• China PET resin export prices weaken, new capacity, trade barriers, and freight increase threaten.
• PET raw material forward curve remains in contango with USD10/tonne premium to Sept.

• Reduced India urea tender purchase hits prices.
• Potash markets remain soft except in Brazil
• Ammonia market slow due to Ramadan festivities.

Daily Market Price Updates and Commentary

• Brazilian peanut production could jump if the crop is rotated with sugar cane.
• Around 1m hectares of sugarcane are reformed in Centre-South Brazil per year.
• São Paulo is responsible for 90% of Brazilian peanut production.

• Mexico’s sugar production will fall to 4.7m tonnes.
• This would be the lowest output in at least a decade.
• Mexico continues to import sugar to meet demand.

• Europe faces supply gaps and price fluctuations.
• Spanish irrigation water shortage.
• Hepatitis A rumours in Moroccan strawberries.

• It’s been one of the wettest UK winters on record.
• Sugar beets are being planted on light land.
• The mild weather increases the risks of aphid-borne infections.