• The week up to the 19^th October saw speculators reduce their net position by 52k lots.
• This was driven by the closing of longs and opening of shorts in almost equal measure.
• The No.11 H contract fell from a high of 20.38c on Tuesday 12^th to a low of 18.82c on the 19^th.

No.11 New York (Raw Sugar) 

• The large spec movement represents a significant shift in attitudes, which have been bullish for the past six months.It impacted price, but if further selling pressure is observed, lower prices could see selling matched by consumer pricing.

No.5 London (White Sugar) 

• The positive outlook for the physical white sugar market reversed this week, with the net spec position falling and H’22 open interest well below historical levels.
• However, the strengthening white premium and strong Z/H spread suggests that there’s some short-term demand.

White Premium (Arbitrage) 

• White premiums remain lower than the margins required by refineries, especially since high freight rates have impacted refiner costs.
• However, the H/H spread’s continued strength hints at a more positive outlook for the white premium.