The No.11 picked up where it left off after Monday’s late start, opening over 10 points higher and quickly rallying up to 19c/lb for the first time since the start of the month. Two more flurries of buying allowed the V24 to trade through to almost 19.3c/lb by mid-morning before a flash crash tanked prices back down almost 100 points, possibly a side effect of the unusually large amount of open interest on options on the V24. Whilst it was initially unclear as to which way the rest of the session would turn from there, concerted buying quickly reversed the losses and carried the No.11 higher through the afternoon to close at almost 19.7c/lb. This represents the most expensive the No.11 has been since the middle of July and shows there is still plenty of buy-side appetite in the market with almost 100k lots traded on the front month.
After a long weekend, the No.5 refined sugar market gapped almost 15USD/mt higher on the open, following the strong gains made over on the No.11 15 minutes earlier. After this positive start the V24 drifted slightly to the downside throughout the rest of the morning session aside from a similar, if less intense than the raws, crash back toward 530USD/mt which was quickly recovered from. The second half of the day saw steady and reliable growth as prices slowly marched back up toward 550USD/mt, a height not reached in over a month. Volume was greater than normal, with almost 15k traded on the front month, and a similar amount on the Z’24 contract. With both the raw and refined markets seeing strength today, the spot white premium stayed relatively steady and around 116USD/mt.
