Raw Sugar Update
Having experienced see-saw activity already this week it was a calmer environment being seen for March’26 this morning as early efforts to influence proceedings yielded no more than a 14.84 / 14.99 band. This did at least leave the potential in place for a look beyond 15c, however though the price then entered a band within the 14.90’s in which it appeared comfortable there was no significant effort being made to break higher. This may well be due to fear amongst specs that they simply lack the capacity to push through the overhead grower pricing, but regardless their inactivity left prices to drift aimlessly. One area of weakness was the March/May’26 spread which was losing ground and trading back under 0.40 points during the afternoon, and while the March’26 outright continued within the early parameters this spread loss was dragging it to the bottom of that band. It seemed that we would see no additional movement, however the final hour drew some spec selling that was able to send the price down to 14.82 during the last hour. No additional loss was incurred, though prices remained at the lower end of the range with March’26 ending at 14.85. This represented an inside day on the chart and leaves us back within the familiar range with the chances of a break likely limited unless some news arrives to end the current stalemate.
White Sugar Update
Trading commenced either side of overnight levels, though the period which followed saw some price volatility with March’26 first falling back to $422.90 and then finding some moderate buying which pushed the price all the way up to $428.00 by the middle of the morning. These movements belied the general calm of recent mornings, though as we moved towards noon a more usual air of calm returned and the price settled down into a band either side of $427.00. Despite having traded above yesterdays highs there was still some resistance being felt on any occasion that the market endeavoured to look upward, and so despite seeing an early afternoon high of $428.,30 the momentum gradually faded. Initially the retreat was a gentle affair with values lipping back to the centre of the days range, but during the later party of the afternoon the smaller traders increased pressure, and prices eventually came within a whisker of the morning lows. Across this movement the white premium held a steady value between $96 and $97, unusually not significantly following the flat price movement, although through the afternoon the spread value was impacted with March/May’26 slipping to end at $2.40. March’26 closed at $424.20 having found some late support from position covering, action which was of no real significance given that we remain within recent parameters.
