Sugar #11 Oct’21
The NY#11 sugar continues to be driven down, partly because of a continued fall in the commodities macro universe, but with an influence of the selling pressure in the front month as the index roll continues. Market started quiet, and the thin liquidity let the market go back to the 20.00s in the early morning, a psychological level which brings in some sellers. Volume didn’t pick up until the usual 9am BRT, and market stayed within the 80-90 range until 12:00 BRT, when the selling volume came in and drove the market to the 19.60s, closing at 19.68. The spread sale in the front prompts took the VH to -0.77, and the HN spread to 1.47, a 0.10 retreat from yesterday.
On the other hand, receivers in the #5 market kept taking advantage of the -20s and the session was full of QWVZ buying, which climbed from -25 all the way to -22.30 at the close. This spread buy prompted a 4 USD/mt raise on the VV WP, with the back premiums however receding on the wake of the stream of bad economic recovery data and a persisting low demand
The FX market had no major macro drivers worldwide, even though EM currencies have been climbing on the recent news. The bears, however, had plenty to feed from in the USDBRL land: the Brazilian GDP growth in 2Q21 was a negative -0.1%, against a median expectation of +0.2%. Coupled with the fiscal uncertainties, political tension and an administrative reform which is not clear to pass this led the BRL to de-value by 0.85% against the USD at the time of writing this commentary.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe Whites Sugar Futures Contract
