• The No.11 has recovered after falling below 18 c/lb.
• The low prices offered consumers a good opportunity to buy.
• The white premium has reduced slightly but the outlook remains positive.

New York No.11 (Raw Sugar)

• The No.11 market was sold aggressively by speculators to drive the price below 18 c/lb, but the price has since recovered.
• The forward curve has flattened for 2022, making forward buying a more attractive proposition.
• There’s no clear direction for flat price, which means speculators are lacking direction.

No.5 London (White Sugar)

• The No.5 forward curve has flattened in the past week.Open interest remains low by historic standards, but the strong price suggests physical demand will be apparent in 2022.

White Premium (Arbitrage)

• The H/H and K/K 2022 white premiums fell due to the rallying No.11 price.
• They remain at historically strong levels, though.
• The level remains slightly lower than the margin needed by the refineries, but we think cash values could help compensate for the deficit.

Other Insights That May Be of Interest…

Market View: The Sugar Market Turns Positive