According to Mr. Gurdev Gill – Agricultural Options Broker at Marex Spectron, on Friday a negative assertion for sugar prices was witnessed. The risk-off sentiment worsened significantly for this morning’s open and that has major implications for EMFX too. For instance the BRL futures point to 4.74 on open. The INR is more defensive since India is such a large oil importer. Marex Spectron sees a downside to prices from here still with macro headwinds generating more incentive for the spec long to continue liquidating whilst the fundamental inputs are reducing the ethanol floor. Gill here suggests to keep buying M0 and N0 puts as they have been advocating on vol and directional purposes.
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