Sugar #11 Mar’22

A slightly higher opening provided the opportunity for the market to continue building upon the past two days of gains and the March’22 price steadily nudged up to 20.23 before easing back as long liquidation emerged. Having fallen back to unchanged levels some moderate buying was uncovered and this proved sufficient to stabilise ahead of the US morning when some light buying from spec / day traders moved us back into positive ground. Volume was incredibly light for the flat price while the spread is also seeing reduced activity as the open interest for Oct’21 reduces, now standing at just over 80,000 lots. On the activity we did see Oct’21/March’22 was sold back to -0.80 points discount, providing the only real feature of the day with the flat price still only finding very light interest despite extending slightly further north to 20.27 later in the afternoon. With a broadly friendly macro picture in the background we headed into the close at the upper end of the range, with the final 10 minutes providing more excitement than the previous hours as MOC buying sent the price upward to 20.34, capping off a third consecutive day of gains and bringing last weeks high mark at 20.37 into close view as the longs look to build on the opportunity.

Sugar #5 Dec’21

An opening push to $514.80 was over as soon as the MOO interest was filled and the market then slipped back by a couple of dollars to give back any advantage that was gained through yesterday evening’s closing push. Consolidation followed however by late morning that gave way to some further slippage with the lack of buying on even lower volumes than recent paltry offerings causing some very light long liquidation to occur. The trickle lower became a spike when some No.11 led spec stops sent us tumbling alongside with very light stops elected which sent the price through a vacuum to $505.10 before stabilising as calm quickly returned. No significant selling followed the fall and with buyers understandably wary of re-entering after their recent endeavours have been undone so quickly the market ticked along within close proximity of the lows. There was little interest until the final 15 minutes when some late selling sent Dec’21 to a new session low of $503.70 with settlement value only just above at $504.30. This unwinds much of the gain made over the previous 48 hours and with the double top suddenly a long way above once more a continuation within the range seems inevitable.

ICE Futures U.S. Sugar No.11 Contract

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ICE Europe Whites Sugar Futures Contract

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Jon Whybrow

Jon joined CZ in 1991, working in the Treasury department before moving to join the derivatives team in 1994. Over 30 years Jon has built up significant experience across derivatives markets and products, particularly sugar, and is now Head of Flow derivatives providing market execution services for CZ’s global client base. He is responsible for the market commentaries which are published each day on CZ app.

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