Raw Sugar Update
The market has endured a torrid run over the past two weeks and the trend maintained through the early part of today’s session as July’25 was pushed down to another recent low at 17.36. Consumer buyers continue to plug away with pricing on a scale down basis and as that absorbed the initial selling a short covering rally developed and pulled the price briefly back into the 17.50’s before starting to slip again once the cover had concluded. Little happened across the next few hours as values drifted within the range but when this period ended with a sharper covering move the short-term sentiment began to change. A short period of flux preceded the next move upward which saw Jul’25 extend to 17.74, a minor move in the context of the last two weeks but one which provides some prospect that the market may be looking to build a bottom. Alongside this movement there were some swings in the May/Jul’25 value which had risen to 0.19 points during early trading before falling back to the low teens as Jul’25 recovered. New highs were posted on the close as traders looked to maintain the recovery with a solid 17.72 settlement level recorded as a result, providing a first step to potential recovery by halting the recent series of weaker performances.
White Sugar Update
The continuing decline and resultant negative chart picture drew out more selling during the early part of the session with Aug’25 making another new 2-month low at $487.70 before returning to credit against short covering. There was little other interest showing and so the later part of the morning into the afternoon saw an extended period of drift across which the price slipped back down through the range, though there was no fresh look at the lows with prices reversing back up again at a greater pace. There was no obvious trigger for the reversal but with solid underlying consumer buying and very limited overhead selling the pace gathered and took Aug’25 up to $497.80 before progress stalled. While not the most spectacular movement it did represent the first positive movement of note in several days and provided reason for traders to try and maintain gains until the end of the day. Alongside the recovery there was also stabilization for the white premiums with Aug/Jul’25 moving back from $105.00 this morning to be nudging at $108.00. The market remained firm through the final couple of hours and even managed a marginal new high at $498.00 at the death having posted a close at $497.30. This step may bring some near-term relief to the market though work remains to be done if it to represent the start of a sustained trend reversal. As expected, a small delivery for 1,393 lots (69,650mt) was made against May’25 with a variety of origins.
