Sugar #11 Oct’21
Early buying pushed Oct’21 upward to the most recent in a series of new contract highs at 18.81 though when the opening interest had concluded we cooled a little to consolidate either side of 18.70. A small dip against some position squaring from day traders was quickly picked up and we headed towards noon still in net credit and well poised to continue the upside exploration. Though the specs clearly would be expected to continue pushing higher some worrying signs then began to emerge with the lack of any real buying from them leading the price to dip into the 18.40’s on two occasions though both times defensive support appeared and recovered the price back to unchanged. A third dip to the same area then occurred and tis time there was no defensive bounce, instead seeing the lower end of the range extended to 18.31 while the Oct’21/March’22 spread sent out its own working signals by slipping towards -0.50 points. The flat price was picked up slightly during the final hour but could not work beyond the mid 18.40’s and it seemed that we alongside coffee were suffering from recent exertions despite the wider commodity macro showing gains on the day. There was a final wave of spec selling which emerged during the last ten minutes to send Oct’21 to a new session low of 18.23, and though settlement at 18.30 changes little other than to place us back at the lower end of this weeks range there will need to be another positive effort from the specs tomorrow if we are not to end the month appearing to have topped out.
Sugar #5 Oct’21
There was early buying around which pushed Oct’21 to $462.80 though with the initial flurry of activity concluded a steady decline back towards unchanged levels followed to fill the overnight gap. The week so far has seen prices swing quite wildly within a broad range and today proved no different as the early afternoon brought with it a little selling to send prices downward again to the $455.00 area. Volume was exceptionally light once more and this was not helping the bulls with the distinct lack of buying interest limiting any recovery and leading to a series of lower lows for the intra-day chart. The morning had seen some light buying for the Oct/Oct’21 white premium with sub $50 values finally drawing some interest however here too we increasingly struggled as the day wore on and by the later afternoon the premium had slumped to $46 with the Oct’21 having fallen to a low at $451.20. Continuing at the lower end of the range we encountered MOC selling which sent the price to a new session low $450.50 while the Oct/Dec’21 spread fell again to -$18.50 to end the day with the feeling of vulnerability still firmly in place.
White premium values struggled again today with the only boost coming last on with No.11 weakness wiping out any losses during the final few minutes. Settlement values see Oct/Oct’21 at $48.00, March/March’22 at $65.30 and May/May’22 at $85.20.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe Whites Sugar Futures Contract
