15:07 GMT – Societe Generale says sugar futures have become a “play on the Brazilian real,” which has gained in recent months thanks to optimism about political reform and rising bond yields that have attracted foreign inflows. The currency of the no. 1 sugar-grower has grown 25% in six months to $0.3186; sugar has risen 50% to 20.2 cents per pound. “In the absence of supportive fundamental news, sugar prices should continue to move in relation to the competitiveness of swing producers like Brazil. Hence, a stronger Brazilian real should continue to support prices,” Socgen says. “Nevertheless, we are somewhat cautious on the potential for further BRL appreciation.” (ed.ballard[a]wsj.com)
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