Sugar Futures and Market Data: 19th April 2022

Insight Focus

• The No.11 is still trading above 20 c/lb.
• Speculators have continued to buy.
• Sugar producers have taken advantage of strong raw sugar prices.

New York No.11 (Raw Sugar)

• The rally above 20 c/lb seen by the 12^th April was fuelled by spec buying as almost 50k long positions were added.
• This brings the net spec position back to a level last seen in November 2021.
• The No.11 has maintained above 20 c/lb in the week since then.
• Producers continue to hedge strongly, adding more than 70k lots of short positions by the 12^th April, leaving them very well covered.
• The No.11 forward curve is still flat to March 2023.

London No.5 (White Sugar)

• CFTC data to the 12^th April shows that the net spec position has risen further, reflecting No.5 peaks of around 560 USD/mt.
• White sugar prices have since retreated to around 540U SD/mt over the course of the last week as the August 2022 becomes the front month contract.
• The white sugar futures curve remains backwardated through till the end of 2023.

White Premium (Arbitrage)

• With the No.11 staying above 20c/lb and the No.5 falling, the August/July white premium has slid to 105 USD/mt.
• After accounting for increased energy prices, we think re-export refiners may struggle to operate profitably at this level.

For a more detailed view of the sugar futures and market data, please refer to the data appendix below.

No.11 (Raw Sugar) Appendix

No.5 (White Sugar) Appendix

 
White Premium Appendix

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