Sugar #11 May’21
The lower levels seen yesterday had encouraged some physical interest and end user pricing to the market and this provided early support as May’21 pushed back up above 16c before easing to consolidate the 15.90’s once the initial buying had concluded. Values continued sideways through into the early afternoon when a little more buying was seen from Americas based specs looking to reverse the trend and pull prices away from 16c, but with only limited volume on show they merely succeeded in touching to 16.13 before we settled back to consolidate the upper end of the narrow range. Little then changed through the afternoon as we saw very low volume once again, and it was not just the outright positions that were slow with spreads also seeing low volume and tight ranges that saw May/Jul’21 between 0.44pts and 0.48pts through most of the day. Prices dropped back to the 16c are during the final couple of hours due to either some long liquidation or simple apathy and we then continued in this area as the close slowly approached. The closing stages saw more pressure applied to the May/Jul’21 spread which recorded a session low 0.42 points while May’21 settled at 15.96 to conclude an uneventful inside day.
Sugar #5 May’21
The poor performance which saw us slip to new recent lows yesterday evening had encouraged a little physical business with the resultant hedge lifting pulling prices higher initially though the move was very short-lived with values returning to unchanged levels by mid-morning. A mixed session then ensued with light buying emerging to pull values upwards but lacking the substance to punch beyond yesterdays range and leading volume to fall away as we settled into an “inside day”. The thin nature of the market was illustrated during the afternoon as May’21 dropped quickly back to the morning lows on less than 200 lots of volume, with weakness for the spreads which saw May/Aug’21 trading beneath $12 adding to the weight as traders became content to roll along sideways in front of the lows. The situation continued all the way through into the close when some MOC selling pushed May’21 down to match yesterday’s $452.20 low mark before settling a small way above at $452.60.
The pressure upon May’21 led the May/May’21 white premium value downward this afternoon, ending the session near to $100.75. The rest of the board was only marginally lower with Aug/Jul’21 closing around $98.50 and Oct/Oct’21 valued at $91.00.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe Whites Sugar Futures Contract
