• Consumers returned to the market after the No.11 dropped below 19 c/lb.
• Specs closed longs and shorts, which suggests that price sentiment isn’t as clear as last week suggested.
• White sugar demand seems to be improving.

No.11 New York (Raw Sugar) 

• The No.11 strengthened after falling below 19 c/lb.
• This was driven by consumers seizing the opportunity to capture the lower price.
• Consumers still have a large amount of buying to do for 2022, and this has shown that they’re targeting prices below 19c.
• After a bearish turn by specs last week, their direction of travel was less sure, with the gross long and short positions falling by 8.7k and 9.5k lots respectively.
• The shorts that exited are likely those that entered the market last week and saw prices move against their position.

No.5 London (White Sugar)

• The short-term outlook for the physical white sugar market appears tentatively positive again.
• The Z/H spread has continued to strengthen and is now well above historic levels.
• Open interest for the Z contract also increased, which is unusual this close to the expiry and suggests that there’s buying interest.

White Premium (Arbitrage) 

• White premiums remain below the margins required by refineries, especially considering how high freight rates have impacted their running costs.
• The backwardated spreads mean margins are even less profitable for those operating on diagonal white premiums.
• The trend seems positive, or at least not negative, for the white premiums, after months of pressure.