Mar 21 – Sugar No.11
- Following on from two sessions of rollercoaster action we saw prices working lower over the course of the morning, struggling to find direction as specs withdrew and sending March’21 down to 13.23. With low volumes changing hands all eyes were on the Oct’20 ahead of expiration and it was remaining well supported on the small volumes that changed hands with Oct/March working up to -0.39 points during the morning with the receivers of the anticipated record tonnage (todays OI remains a huge 54,115 lots) content to keep the spread firm. In an incredibly quiet environment we only clambered back towards opening highs during the middle of the afternoon as some light spec buying reared its head to defend longs, action which triggered a brief algo reaction. While the first rally was brief the specs dusted themselves down and came back with another push during the final hour which took us to challenge yesterday’s highs, successfully trading a point beyond to 13.54 as we reached the closing call. Settlement was just below at 13.51 leaving the market well placed to test recent highs once more should the specs have the appetite to continue to push as recent action suggests that the move is in their hands.
- Tonight’s Oct’20 expiry has attracted a record volume with 51,599 lots (2,621,358t) anticipated to be tendered. No origins are currently confirmed though it is expected to be mostly, if not all, of Brazilian growth. Full details will be issued by the exchange tomorrow.
Dec 20 – White Sugar No 5
- Following on from the volatility of the past two days today proved to be remarkably muted, holding a far narrower range on low volume until the closing stages. The speculative activity that has been so prevalent was nowhere to be seen until late on and instead it was left to the trade to go about their business unimpeded for a change. Initial losses were quickly eradicated as light buying against overnight physicals pushed prices back to unchanged in a very thin environment, though once complete we drifted back off a little, broadly holding between $370 and $372. With the market treading water we saw some movement in white premium values against No.11 noise, leading March/March’21 to range between $76 and $79 despite the lack of any meaningful activity. The final hour saw the board light up as the specs came out of the woodwork to dress values and build some fresh technical momentum, breaking beyond yesterday’s high on the close to ensure a strong conclusion that they will no doubt be keen to try and build upon.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe White Sugar Futures Contract
