Sugar #11 Mar ’21
Opening losses were quickly erased as early buying came into nearby months, though the gains were limited and we spent most of the morning holding just a few points above overnight levels. While unspectacular this did at least provide a firm basis from which to build and with London whites already pushing ahead we began to pick up some momentum during the afternoon as March’21 pushed back to the 16.40 area and erased most of yesterday’s losses. The recovery then encouraged smaller specs back to the fore and a second wave of buying led by them had March’21 briefly trading up to 16.56 while simultaneously leading the March/May’21 spread out to 0.91 points. We saw very little producer selling on the rally even though the USDBRL remained near to 5.30, but despite this fact the market soon turned away from the highs as the spec buying eased, illustrating that at the present time the market really needs the funds to be adding to longs to sustain higher levels unless we see a significant shift in fundamentals. Having returned to mid-range a quiet close seemed the likely option however in one final twist there was some long liquidation which occurred around the closing call, sending March’21 back into the 16.20’s with settlement established at 16.27. This still represented a gain however the nature of the session suggests that continuing choppiness within the broader range is likely in the near term.
Sugar #5 Mar ’21
The fall in values yesterday brought out some early buying and though we briefly slipped back to overnight levels soon afterwards the broad trend remained upward throughout the morning. The recovery seemed to settle any concerns over the markets vulnerability following such a sharp decline and provided the basis for values to accelerate back upward as we moved into the afternoon, rallying on thin volume with very few resting orders in place to provide resistance. The situation remained the same as further waves of moderate buying pushed prices ahead, culminating in a session high mark of $461.30 for the March’21 contract. The buying then eased which allowed prices to sink back by around $5 into the range where consolidation occurred for the remainder of the session. Through all of the flat price volatility we did not see the wild swings in spread values which have characterised many recent sessions, March/May’21 only reaching a widest $17.90 and then trading marginally lower at $16.50 as we approached the close. White premiums meanwhile gained strength on the rally to reach $99 for March/March’21 and $101 for May/May’21, though by the end of the day these values had softened back a touch to $97.00 and $99.50 respectively. The call saw some long liquidation to leave values in the middle of the daily range suggesting that continuing movement within the broader range is the most likely near term scenario.
ICE Futures U.S. Sugar No.11 Contract
ICE Europe White Sugar Futures Contract