Daily Market Price Updates and Commentary 5th June 2025

Raw Sugar Update

There was no sign of any buying interest as we resumed, and the lack of any hedge lifting showed an expectation that more support testing was inevitable. It did not take long for Jul’25 to slip down to match the recent 16.66 low mark with the market holding this mark for a while and edging along just ahead awaiting some selling impetus for a test below. This arrived with around 2,500 lots of selling later in the morning which forced the price through initial scales to 16.62 before pausing again to take stock ahead of the arrival of US funds/specs. Their arrival was obvious as another more aggressive burst of selling sent Jul’25 down to 16.46 before short covering / profit taking kicked in and returned the market to the 16.60’s. Such correction is commonplace, but the market remains very much of the negative with the recovery ending once cover was complete and resuming its sideways drift. Spreads were again trading lower and with Jul/Oct’25 dropping back to -0.33 points against increasing roll volume (the full index roll commences tomorrow) there was more fuel being added to the bearish fire. Through the last hours Jul’25 showed signs that it may creak lower but ultimately held on to settle at 16.57, leaving it a little away from the lows but still technically very weak.  

White Sugar Update

There have been few reasons to be positive about the market over the past couple of weeks and yesterday’s performance only served to enhance the technical vulnerability. The opening saw this weakness manifest as Aug’25 quickly dropped beneath the recent low mark at $467.40 to begin another morning of struggle. Prices did not collapse, but equally there were few buyers to be found away from the downside scales and so the market proceeded to edge along quietly in the mid/upper $460’s until the early afternoon. Another push lower followed at this stage and despite the limited volume there was a drop to $463.00 before the position covering kicked in and returned values to the earlier range. There was far less movement for the premium values today with Aug/Jul’25 only softening slightly to sit near to $98.00 later in the afternoon with Oct/Oct’25 looking to hold at $90.00, while for the spreads there was another narrowing against the flat price weakness and Aug/Oct’25 saw lows at $1.50 late on. MOC selling saw the earlier low matched and ensured yet another negative closes at $$463.30 to maintain the pressure heading into Friday.