The usual array of opening buying / hedge lifting took Jul’23 higher during the first hour, reaching a high at 25.63 before falling back once the necessary cover had been taken. The market then settled into a holding pattern for the rest of the morning, the expectation that this afternoon’s UNICA data would bring news of another strong harvest during the second half of May curtailing any buying interest while sellers remain reluctant following the recent runs back to 26c. We did not have to wait for UNICA for a fall in values with Jul’23 plunging to 25.03 during the early afternoon, and though some short covering followed the market remained under pressure. When the UNICA announcement came it showed cane at 46.191mmt / Sugar 2.902mmt / Mix 48.76% / ATR 135.22, marginally higher than the already strong estimates for the period, though somewhat surprisingly triggering a return to credit for the market with Jul’23 shooting back up to 25.54. This anomaly did not last, and the rest of the afternoon was spent slowly working back down through the range to leave Jul’23 back in the vicinity of 25.20 as the close approached. There was some MOC selling which ensured a settlement value at 25.16, and while the market ended weakly it remains firmly to the centre of the broad 24.23/26.15 range seen over the last couple of weeks.
There was a familiar pattern about the market this morning as buyers emerged during the early part of the session to take nearby values higher, Aug’23 reaching $690.10 before dropping back quickly to overnight levels. Volume was light through this period and showed no sign of picking up through the rest of the morning, the market drifting aimlessly with specs showing no desire to punt the market to either direction. That was until the early afternoon when an aggressive push lower from specs on the No.11 pulled our own market lower, a sharp decline to $677.00 taking place before seeing a recovery against short covering that had values once again sitting in the lower/mid $680’s. The run back into the $680’s did cause the white premium values to extend back a little and regain some recently lost ground, Aug/Jul’23 trading back out to the $127 area, however the rest of the market remained quiet. The remainder of the session saw values trading steadfastly within the morning confines, the low activity providing little reason to break out. The closing stages played out to the bottom end of the band, ending with Aug’23 at 680.00 and parameters unchanged.
