• The No.11 and No.5 barely moved last week.
• The specs appear tentatively bullish after a few weeks without clear sentiment.
• The strengthening Z/H spread ahead of the Z’21 expiry appears positive for physical demand.

New York No.11 (Raw Sugar)

• The No.11 traded horizontally again last week.
• The specs seemed bullish, but their buying was matched by consumer selling.
• Open interest across the 2022 contract is close to historic levels, which is a positive sign for physical demand.
• However, the spreads remain strong for 2022, which should discourage short-term buying.

No.5 London (White Sugar)

• The No.5 market also traded horizontally last week.
• The specs, however, took a bullish turn and sharply increased their net long position.
• The recent expiry saw a good delivery at a strong premium, which suggests physical demand is recovering after a few poor months.

White Premium (Arbitrage)

• The lack of movement in raw and white sugar prices means the white premiums have changed only modestly in the past week.
• The level remains lower than the margin needed by the refineries, especially considering how high freight rates have impacted their running costs.
• However, the recent weakening in bulk shipping costs has reduced the margin required.
• White premiums have also weakened, meaning the market is still well away from profitable levels.

Other Insights that may be of interest…

• World Sugar Market Five-Year Outlook

Interactive reports that may be of interest…

• When Will Raws Consumers Buy for 2022?