Sugar #11 Mar ’22
The last weeks saw the funds reduce their position on the #11 Sugar by about 50k lots, which market chatter deems to be the responsible for the fall from the highs to lows not seen since August.
Today, however, it seems that bears have given a break and the fundamental traders seized the opportunity to buy. With a rise on energy, particularly, Brazilian Ethanol and the Indian export parity being significant price drivers, Sugar appeared oversold and both commercials and specs took the chance to secure somewhat lower levels.
During the morning liquidity was thin and market traded within the 19-19.10 range on the #11. After 10 a.m. steady buying ensued from fundamental speculators which drove the price all the way to the 19.40s, where it stayed until the end of the session. Selling demand from Brazilian producers is keeping low, even though the recent days saw BRL sling higher, since producers are well hedged into 2022 and treating 2023 with a bit more care. The lower physical demand on the whites still results in some weaker premiums, and we saw some commercial activity on the whites market, especially on the longer tenors.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe Whites Sugar Futures Contract
