• The No.11 traded positively in the week recently captured by the CFTC data.
• This quiet price movement was reflected by minimal changes in positioning.
• In white sugar, the closest spreads flattened fast, which could be positive for 2022 physical demand.

New York No.11 (Raw Sugar)

• The week up to the 2^nd November was quiet for order flow, and this was reflected by horizontal price movement.
• However, prices have since taken a bullish turn and are once again pressuring 20 c/lb.
• The strong spread structure remains.

No.5 London (White Sugar) 

• The short-term outlook for the physical white sugar market appears tentatively positive again, with the Z/H spread getting to a very positive +$11.4.
• It has since weakened, though, with the Z expiry just seven days away.
• The most interesting change, however, is the quick shift of the next two spreads towards neutrality.
• This should be positive for physical demand in 2022, as further weakening could incentivise buying interest.

White Premium (Arbitrage) 

• White premiums remain lower than the margin needed by the refineries, especially considering how high freight rates have impacted refiner costs.
• However, recent weakening in bulk shipping costs have reduced the margin required.White premiums have also weakened, meaning the market is still well away from profitable levels.