The day began with the market in the mid $540’s and Oct’24 traded a high of $547.70 during the first moments, but with limited buying on show the price quickly plunged. Within 45 minutes the price had fallen all the way to $534.00 and it was only in this area that some supportive end user pricing allowed the picture to stabilise. Volumes fell away through the morning, and it was the spread which kept activity ticking along as rolling continues ahead of next week’s expiry, the flat price weakness leading the Oct/Dec’24 value to narrow. Moving through the session the price continued within a narrow band, though any movement saw the range extended lower still, beginning to close the chart gap which opened last Tuesday. By late afternoon Oct’24 had recorded lows at $530.10 and was showing no sign of recovery as the concerns which drew short covering last week were long forgotten. Only some end of day position squaring was able to pull prices off the lows with a minimal recovery seeing a close at $532.20 while the impact of the spot weakness and rolling left Oct/Dec’24 valued at $9.70. If No.11 were to follow this lead, we could see it also make a significant opening loss tomorrow, so how it reacts will be keenly followed for when we resume.
No.11 sugar market is closed today in observance of Labor Day holiday.
