Daily Market Price Update and Commentary 5th June 2020

The recent momentum has brought the 12c level into close focus and with the macro already showing gains the market duly commenced higher as specs once more looked to push higher. Moderate scale selling continues to be seen from producers however not in significant quantities, and so despite the relatively low volumes changing hands we were able to maintain the gains comfortably. This platform provided the basis for a series of pushes towards 12c over the course of the afternoon, and though the buying was not of a size to easily push through we did gradually stretch to new highs with periods of consolidation in-between. Volumes was by now increasing though this was in no small part due to the start of the index fund roll which brought some strong Jul/Oct interest, however it was well matched off through trade buying as the value held near to -0.07 points. Thoughts that the market may have done enough for the day were premature and the final 30 minutes saw a final push towards, and beyond 12c. Buoyed by the positive macro following the US non-farm payrolls and a USDBRL rate trading back to 4.94 (the first time back into the 4’s since late March) the longs gave the market a push the extended to 12.08, cementing a settlement at 12.02 to conclude a strong weekly performance. Tonight’s COT is expected to show a modest increase in the speculative long as at Cob Tuesday though the gains made in the past three sessions suggest that a good deal more have been added since. 

Futures no.11


ICE Futures U.S. Sugar No.11 Contract


ICE Europe White Sugar Futures Contract


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