Sugar #11 Oct’21

With everyone’s eyes turned towards the Jackson Hole symposium, the low volume of today’s session suggest prices in the sugar markets seemed to be mostly macro driven, with quite a bit of noise. With the remarkable exception of wheat, most of our favorite commodities have remained stable or edged lower today, dragged by a stronger dollar and lower risk appetite. NY#11 sugar erased yesterday’s right in the first hour of the session, coming from the high of 19.87 to the high 19.50s, then trading within the 50-70 range afterwards until the close. VH spread surged 0.07pts today, suggesting the bulls aren’t done yet, however the lack of selling in the longer tenors has allowed a relaxation on the 2022 curve, with the H/K2 and K/N2 receding 0.06 and 0.05 pts respectively. On the whites side, the VV1 premium continues under pressure from the lack of offtake, however the 2022 arbs gained strength, perhaps on the belief of an ever more normal economy with demand and consumption levels getting steadily higher.

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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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