Sugar #11 Oct’21
Initial trades at unchanged were soon forgotten as the market looked lower once again, moving to sit just ahead of yesterday’s session lows with a tired appearance. Volume was light during the morning and so it was that we remained broadly sideways though by late morning we had edged down into fresh recent ground with Oct’21 showing at 19.05. With the spread under pressure from the ongoing index roll there was little for the bulls to grasp on to, a little more long liquidation taking place as the start of the US morning to send the price down beneath 19c. The slow slide continued through until mid-afternoon when the announcement of the latest UNICA numbers showed a crush of 43.126m tonnes, with 2.954m tonnes of sugar produced and a sugar split at 46.43%, very marginally below most estimates. This sparked a brief recovery back to 19c however the tone was well set and it was not long before we turned back down to further test underlying support. Better buying in the 18.70’s stemmed the decline during the final couple of hours leading us to an Oct’21 settlement level of 18.79 with buying taking it back into the 18.80’s on the post close as positions were squared up ahead of the weekend.
Sugar #5 Oct’21
The poor performance yesterday has undermined confidence amongst some of the longs and we started today on the backfoot with values slipping downward during the early stages. Dec’21 crawled along in the lower $490’s through the first few hours with outright volumes again rather thin, and though the spreads were seeing some size change hands the sense of apathy for the front months suggested that we would continue to investigate lower. So it proved to be as the arrival of Americas based traders simply encouraged some gentle spec selling which left Dec’21 easing into the upper $480’s and struggling to gain a meaningful foothold. A brief pull away from the lows occurred as we tracked No.11 following the latest UNICA numbers however it was a brief interlude in an otherwise poor day and prices soon dipped to further new lows at $486.00. Within the weakness there was also another fall in the Oct/Dec’21 spread which moved down to -$23.90 while the Oct/Oct’21 premium was trading in to $48 as it fell victim to this spread weakness. Heading into the call we continued only a small way above the lows to leave Dec’21 settling at $487.60 to exhibit short term technical negativity.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe Whites Sugar Futures Contract
