New York No.11 (Raw Sugar)

  • The No.11 weakened well below 19 c/lb after Omicron caused speculators to close positions.
  • Since, however, there’s been a strong price recovery with the No.11 again pressuring 20 c/lb.
  • This opportunity was taken by industrial consumers who have increased their long paper holding, though not by a massive amount.
  • The spread structure has remained relatively steady, which will likely inhibit large forward buying from re-export refiners.The withdrawal of specs means there’s room for them to return to the market if the conditions become attractive to them once more.
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No.5 London (White Sugar)

  • The No.5 market has rebounded, after the pressure created by the spec exit.
  • The H’22 contract is still below historical levels, which could be bearish for physical demand in the short term.
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White Premium (Arbitrage)

  • The 2022 white premiums have continued to slowly strengthen.
  • However, the level remains lower than the margin needed by the refineries, especially considering how high freight rates have impacted refiner costs.
  • This level is making it difficult for re-export refineries to operate at present.
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Other Insights That May Be of Interest…

World Sugar Market Five-Year Forecast

Market View: New Czapp, Same Sugar Market

Who is Buying and Selling Raw Sugar?