Insight Focus
- No.11 raw sugar futures trade sideways for third week in a row.
- Commercial participants continue to add new hedges.
- The H/H white premium remains elevated, now standing at 141USD/mt.
New York No.11 Raw Sugar Futures
The No.11 raw sugar futures contract has moved sideways for the third week in a row, trading between 20.5-21c/Ib.
Starting with the commercial participants, they have been busy adding new hedges, both producers and consumers adding 27.9k and 22.5k lots respectively.
Speculators in raw sugar have continued to add to their short positions, adding 3.3k lots in the last week. Despite the addition of a few spec long positions, the overall net spec position fell by 2.6k lots this week, bringing the total net spec position to just over 17k lots.
The speculative long now accounts for just 16% of open interest. This is the lowest level it’s been at since May 2020, when prices were at 10c/lb and many countries were in full covid lockdown.
The No.11 forward curve remains broadly flat in 2024, while 2025 remains mildly backwardated.
London No.5 Refined Sugar Futures
Looking at the No.5 refined sugar futures, prices have strengthened slightly and are now trading at 613USD/mt.
The refined sugar futures curve continues to remain heavily backwardated.
White Premium (Arbitrage)
The H/H white premium remains has traded sideways in the last week, closing at 141USD/mt last Friday.
The 2024 white premiums remain strong. We’ve not seen this kind of strength in the H/H white premium at this stage in the cycle in at least 5 years.
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
