Daily Market Price Updates and Commentary 2nd June 2025

Raw Sugar Update

The pre-weekend return to a 17c handle was drawing support as we got underway with Jul’25 rising to 17.29 during the first 30 minutes of trading and then consolidating these gains. The latest COT report had shown an expected mild growth in the speculative net short holding to -61,476 lots, and there was no sign of any significant short covering through the morning as the early gains simply consolidated before values edged back into the teens. Prices continued sideways through into the afternoon, and while some light buying reappeared to take the price ahead to 17.38 it was largely driven by small traders and was soon absorbed by some scale grower pricing orders. On continuing quiet trading this triggered some long liquidation which sent the market back down into the range, and for much of the afternoon it seemed that we would simply drift aimlessly. That changed with an aggressive push down through 17.00 which brought the market back within proximity of last weeks lows and though they were not quite revisited the late session low at 16.85 was within 0.04 points of the mark. With nearby spreads also a little weaker and Jul’25 settling at 16.88 some investigation of 16.81 seems likely, with the potential of continuing downside movement in the hands of the funds and how much more they are prepared to sell into the resting consumer scales.   

White Sugar Update

Recent activity has seen the market struggle against technical weakness, and while the week started more positively with a nudge up to $481.90 before looking to consolidate the gains. This was largely successful and despite a late morning reversal through the range the market managed to stabilize and remain away from recent lows. Another round of buying followed as we moved into the afternoon and new highs recorded at $484.00 matched directly against the early May lows, something which reinvigorated the bears from a technical standpoint once prices eased back down the range once more. Breaking the morning lows drew out more aggressive selling and took the price to sizable losses later in the afternoon, and while scale buying from consumers did slow the rate of decline the market reached $469.80 to be within a dollar of last Thursdays low mark. The choppy flat price had seen Aug/Jul’25 swing either side of $100 across the day, though with the weaker ending so the value softened to head out at $98.75. Aug’25 ended the day at $470.90 to conclude an ultimately poor session which leaves us open to additional downside testing.