Weekly Market Overview
By QSL Business Graduate Elliott Apel

Sugar

• The MAR20 ICE #11 contract continued to trade in the 14-15 USc/lb range last week, bottoming out at 14.10 USc/lb on Monday before peaking on Wednesday at 14.87 USc/lb. It closed the week at 14.61 USc/lb.
• In Brazil, ethanol is now slightly more than 70% of the price of gasoline at the pump. As ethanol's efficiency rate is around 70% of that of gasoline, it's becoming more cost effective for Brazilian motorists to use gasoline, decreasing ethanol demand. This, along with the Brazilian Real reaching a new all-time low of 4.2892 USD/BRL, may prompt mills to shift to producing more sugar.
• Speculators continued to remain optimistic and go long, with the Commitments of Traders report showing a 125,000 lot net-long position as of 28 January 2020. 

Currency

• The Australian Dollar continued to fall over the course of the week, dropping below 0.67 AUD/USD for the first time since August 2019 before closing the week at 0.6688 AUD/USD.
• The Coronavirus epidemic continues to raise concerns over global growth prospects. Australia's GDP is estimated to be lowered by around 0.2% this year with the tourism industry most directly impacted by the virus. The World Health Organisation has confirmed more than 17,400 cases and 362 deaths to date.
• Brexit: The UK formally left the European Union on Friday. There's been little initial economic impact as the separation is in political and legal terms only. An 11-month transition period ensues. 
• Coming Up: The RBA is predicted to leave the cash rate unchanged when they meet for the first time this year today (Tuesday), after positive labour force and inflation data was recently released. 

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