As usual, the day started very low volume and sugar within narrow range. From 9 a.m. onwards, bullish news of high demand and low crop in Thailand, attention to CS Brazil dry weather and a consolidation of oil prices worldwide drove today’s session in the NY Sugar market, with specs trying again to push the first prompt into the 13.00s. Live market chatter estimates a net spec long position of ~150k lots on the #11. BRL weakened further today on the trail of a dovish statement from the Brazilian CenBank yesterday and the resignation of two high profile names in Brazil’s economic agenda. The move created a good pricing opportunity for the Brazilian hedgers, who proceeded with 2021/2022/2022 pricing even with the low liquidity. This drove the back end of the curve down, emphasizing its current state of backwardation.

Oct – Sugar No.11

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ICE Futures U.S. Sugar No.11 Contract

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ICE Europe White Sugar Futures Contract

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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.

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