Daily Market Price Updates and Commentary 12th Jne 2025

Raw Sugar Update

There was little to get excited about as the market started the day in the lower 16.40’s, and aside from a brief nudge down to 16.33 the market spent the morning edging along sideways and showing no desire to break away from 16.40. This continued into the early afternoon, but with the US morning we saw selling resume as specs/funds looked to drive prices back downward and further benefit their now sizable, short position. Though scale buying remains beneath the market it is not substantial at every level and so the spec efforts were able to drive the price to yet another 4-year low for the front month, on this occasion reaching to 16.18 before the pressure eased and the market was above to dig in. A period of calm ended with a short covering spike back to 16.40 however the market could not return to credit and stopped short of last night’s closing level to instead sit in the 16.30’s. Today saw the final day of the index roll window and the trend of marginally weaker spread value was maintained with Jul/Oct’25 lows at -0.45 points late the afternoon. This was in conjunction with late pressure on the flat price which returned values to the lower end of the range and left Jul’25 settling at 16.27, renewing the technical weakness with talk growing that we may potentially see an 15c handle soon.

White Sugar Update

Early trading saw Aug’25 printing either side of unchanged however there was not the same buying impetus being seen as yesterday and so the market was left to drift in the lower $470’s. A small burst of buying ahead of noon took the market briefly back to $473.00 but the wider impetus was lacking and so with limited consumer support the market relented and fell back to new daily lows. Into the afternoon the pace of decline grew as short holders sensed the opportunity to build pressure and benefit their valuation, and their efforts saw Aug’25 back to $494.80 before some position covering kicked in and allowed for consolidation. This pressure undid some of the gain made by the spread yesterday with Aug/Oct’25 trading back down to $5.20 while the Aug/Jul’25 arbitrage value slipped to $107.50, though both values continue to stand up well when considered against where they stood at the start of the week. The thin nature of the outright meant a bounce back towards $470.00 was achieved on very low volume, and it was unable to maintain as pressure elsewhere for No.11 dragged our own value back to the lows late in the afternoon. Aug’25 settled at $466.30 to remain technical vulnerable despite being a small distance away from the recent $460.00 lows.