Insight Focus
Raw sugar futures traded higher between 19-23c/lb. Both producers and end-users closed out a large volume of positions. Speculators are no longer net short in the sugar market.
New York No.11 Raw Sugar Futures
The raw sugar futures market traded higher last week between 19-23c/lb and closed at 22.7c/lb on Friday.
Looking at the commercial side, both producers and end-users have closed out a significant number of positions. End-users closed out 65,700 lots of long positions and producers reduced their short position by 35,600 lots of shorts.
Speculators closed out 14,800 lots of short positions and opened 7,500 lots of long positions.
Speculators are now no longer net short in the sugar market as the net spec position stands at 2,600 lots.
The No.11 futures curve has strengthened quite significantly at the front of the curve but remains in backwardation across the board.
London No.5 Refined Sugar Futures
The No.5 refined sugar futures traded between USD 523-585/tonne and closed at USD 584.9/tonne.
Speculators opened a minimal number of long positions at 3,600 lots of longs, bringing the net spec position up to 24,000 lots.
No.5 Open Interest
Following a similar trajectory to the No.11 raw sugar futures curve, the No.5 refined sugar futures curve has also strengthened across the board.
White Premium (Arbitrage)
The H/H white premium traded between USD 82-88/tonne and closed at USD 86.4/tonne on Friday.
Many re-export refiners need around USD 105-115/tonne above the No.11 to profitably produce refined sugar. The current white premium is below this level.
For a more detailed view of the sugar futures and market data, please refer to the appendix below.
No.11 (Raw Sugar) Appendix
No.5 (White Sugar) Appendix
White Premium Appendix
