Daily Market Price Update and Commentary 24th September 2020

The day began with nearby values trading between unchanged to slightly lower as yesterday afternoon’s pullback from the highs deterred buyers from immediately stepping in. Gradually a little light buying from consumers did creep in to drag values up away from the lows however it was not until mid-session and the arrival of US based specs that we gathered a little more pace and pushed onward to 13.44. With the macro leaning towards the negative side we stalled at this point and retreated back into the earlier range, revisiting the morning lows before eyes turned towards the latest update from Unica. The release of the latest numbers was near to market estimates for sugar and showed 44.39m tons cane / 3.18m tons sugar / 47.01% mix / 159.05 kg/t ATR / 2.29b ltr Ethanol and led to continued activity within the range. A recovery in the USDBRL back to the lower 5.50’s from an early low of 5.62 may have led to a push to marginal new session highs in the belief that overhead selling would ease but in truth we never appeared likely to challenge yesterday’s recent highs and concluded a quiet day comfortably within the range, posting nominal gains.

Mar 21 – Sugar No.11

Selling kicked in soon after the opening this morning sending Dec’20 downward to a low of 368.40. In quiet prevailing conditions we gradually climbed back upward towards unchanged levels over the course of the next few hours though with the macro quiet and little fresh news many traders were taking a back seat from proceedings. A spike upward occurred mid-session as white premiums remained in line with a rise in No.11 values, and the white premiums then found a little more support to push outward over the course of the afternoon towards $91 for Dec/Oct’20 and beyond $79 for March/March’21. There was a push to new session highs later in the afternoon as the macro picked up a touch to bring the CRB into positive ground as an otherwise featureless session concluded with nearby positions showing steady net gains.

Dec 20 – White Sugar No 5

ICE Futures U.S. Sugar No.11 Contract

ICE Europe White Sugar Futures Contract