• The No.5 refined sugar market has returned about $330 but oversupply looms on the market. 
  • Warehousing in Thailand and Central America is filling rapidly as cane crushing finishes. 
  • This means it’s getting increasingly expensive to store sugar and the sugar trade are seeking exports. 
  • Despite this negative outlook, the whites market has weakened so severely in recent weeks that some form of consolidation or partial price recovery might be healthy. 
  • This means the market remains rangebound, trapped by heavy producer selling at the top of the range and opportunistic end user and speculative buying at the bottom of the range.  

 

 

Oliver Chapman

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