• The week up to the 4^th October was quiet one for order flow in the No.11
• Today, however, prices have strengthened significantly, suggesting a return of buying to the market.
• The outlook for refined sugar has continued to improve with the Z open interest rising and the Z/H strengthening.

No.11 New York (Raw Sugar)

• The spec and commercial long and short positions showed modest changes, which was reflected in quiet price activity.
• The H’22 open interest is at a historically low level this far from expiry, highlighting the lack of cover consumers have going into the year.
• The spreads are weakening after being heavily backwardated, which will be positive for demand.

No.5 London (White Sugar) 

• The white sugar physical market is showing signs of recovery, with sentiment looking more positive as the net spec long grew for the third consecutive week.
• This is supported by the rapidly strengthening Z/H spread and the increase seen in the Z contract open interest both suggesting that physical demand is returning.

White Premium (Arbitrage) 

• White premiums remain lower than profitability margins needed by refineries, especially considering how high freight rates have impacted refiner costs,
• However, with the H/H showing strength, and an improving whites market, this could be positive for the white premium in the long term.