Sugar #11 Oct’21
NY #11 pared losses today amongst a recovery of energy prices and mild upward momentum in the commodities markets, plus the quintessential high volatilities the ever closer Oct-21 expiry brings. Today we saw a very choppy market, with high volume order flows coming from both directions. Low volume until 9am BRT was met with a sudden wave that kept the market between the 19.65 – 19.90 range on the first prompt, always with large order flows from both sides. After 11am BRT, the last buying wave ensued and took us to the 19.90s again, which is where we settled. Without the selling pressure on the back months, 2022 spreads continued to weaken, which suggests that today’s move might not necessarily reflect a bullish fundamental view.
On the whites side, spread buying continued and premiums strengthened, taking us back in the 50s on the front prompt.
On FX, we had EM performing well today, with most EM currencies profiting from the risk on move and BRL leading gains on the sudden approval of a tax bill overnight in Brazil. However BRL gains were stopped and the Brazilian markets as a whole soured after noon BRT with the political tensions and the ever more likely prospect of a general strike and protests on September the 7th, Brazil’s independence day.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe Whites Sugar Futures Contract