Daily Market Price Update and Commentary 31st August 2021

Sugar #11 Oct’21

A global fall in the commodities markets today took place with Chinese PMI data suggesting that a fall on demand is indeed taking place. This dragged the sugar market down, in a day that saw quite a bit more volume than the last few days, also in part due to the funds who might be starting their index roll in anticipation of the contract expiry. The NY#11 opened at unchanged, but saw steady selling pressure throughout the whole day and reaching the low of 19.73 at around 11am BRT. Resistance in the 19.70s brought little upward pressure, taking the market up to 19.92, but the downward drag brought us back again to a close of 19.84, a considerable -0.38 loss from yesterday’s settlement. 2022 spreads saw quite a bit of relaxation on the wake of the selling pressure, with VH, HK, KN and NV spreads closing at -0.08, -0.11 , -0.10, -0.05 relatively to yesterday’s settlement.The large recession on the #11 was met with a reinforced white premium, with VV, HH and KK arbs going up by an average of 5 USD/mt in the absence of the upward pushes by NY bulls, even though demand is still in the lows. The bulk of today’s activity was on the VZ spread, for which we see a considerable resistance on the -25 USD/mt level, suggesting one of the physical players would be willing to receive at these levels.In the FX markets, last week’s dovish signals from the FED prompted a continuation of the gains in EM currencies, with the BRL advancing 1.14% this week, MXN at -0.65% and ZAR at -1.6%. 

ICE Futures U.S. Sugar No.11 Contract

ICE Europe Whites Sugar Futures Contract