• The run up to the No.11 V expiry was quiet for speculators, with the net position increasing by just 2k lots.
• The V expired at a heavy discount to the H, highlighting the weakness in the physical market.
• This weakness should continue as the backwardated spreads discourage long-term buying.

No.11 New York (Raw Sugar)

• The V expiry saw many roll positions into the H as the weak physical demand was felt.
• The weak V/H spread highlighted the lack of interest of receivers from the tape, with difficulty organising shipments and placing sugar.

No.5 London (White Sugar) 

• The white sugar physical market remains weak, despite a high flat price.
• This is especially clear in the low historical interest of the recently expired V contract and the upcoming Z one.

White Premium (Arbitrage) 

• The white premiums remain lower than the margins required by refineries, especially considering how high freight rates have impacted refiner costs.
• However, with the weak white sugar market, this won’t change until strong buying interest for refined sugar returns.