Slim buying in the morning led the market once again to the 12.90 levels, with very little volume. An early decline in crude oil prices, which undercut ethanol prices and may encourage Brazil’s sugar mills to direct more cane crushing toward sugar production rather than ethanol production. The market thereafter was swinging around 12.95 until 8:30. a.m., when the funds resumed their buying on the wake of continuous strong Chinese demand and concerns that drought conditions will reduce Thailand’s sugar crop despite some recent rain, reached level of 13.16. However, oil prices recovered leading the market into the 13.23s since then swinging back to the 13.21s and up again to settle at 13.24.

Oct – Sugar No.11

undefined

undefined

ICE Futures U.S. Sugar No.11 Contract

undefined

ICE Europe White Sugar Futures Contract

undefined

Jon Whybrow

Jon joined CZ in 1991, working in the Treasury department before moving to join the derivatives team in 1994. Over 30 years Jon has built up significant experience across derivatives markets and products, particularly sugar, and is now Head of Flow derivatives providing market execution services for CZ’s global client base. He is responsible for the market commentaries which are published each day on CZ app.

More from this author