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25 Apr 2016
Commodities: Prices supported by supply deficits – Commerzbank
Research Team at Commerzbank, notes that the Sugar and coffee prices have risen sharply of late on the back of increased supply deficits.
Key Quotes
“The deficits are likely to remain in place for the time being despite higher crops in Brazil. One key factor influencing prices remains the Brazilian real, which is likely to come under pressure again due to the political and economic crisis in Brazil and as such will also weigh on prices of sugar and coffee. We see further upside potential for the cocoa price because the crop expectations – which in some cases are overly optimistic – look set to be disappointed.”
Key Quotes
“The deficits are likely to remain in place for the time being despite higher crops in Brazil. One key factor influencing prices remains the Brazilian real, which is likely to come under pressure again due to the political and economic crisis in Brazil and as such will also weigh on prices of sugar and coffee. We see further upside potential for the cocoa price because the crop expectations – which in some cases are overly optimistic – look set to be disappointed.”