ICE Futures U.S. Sugar No.11 Contract
Settlement (cUS$/lb) Open High Low Last Volume O/I Life High Life Low
Mar27 18.21 -0.03 ▼ 18.22 18.44 18.18 18.21 61,555 582,952 21.29 14.42
May27 17.66 -0.05 ▼ 17.71 17.86 17.64 17.66 27,490 201,957 20.40 14.29
Jul27 17.32 -0.05 ▼ 17.37 17.49 17.30 17.33 15,135 147,818 19.81 14.27
Oct27 17.33 -0.05 ▼ 17.39 17.50 17.32 17.34 9,470 96,102 19.63 14.45
Mar28 17.75 -0.03 ▼ 17.78 17.88 17.72 17.76 3,359 59,239 19.83 14.97
May28 16.81 0.00   16.81 16.92 16.76 16.82 683 26,154 18.77 14.82
Jul28 16.37 0.03 ▲ 16.38 16.45 16.30 16.36 372 19,695 18.10 14.74
Oct28 16.38 0.05 ▲ 16.35 16.43 16.29 16.38 392 17,529 17.91 15.01
Mar29 16.86 0.08 ▲ 16.77 16.88 16.74 16.86 280 6,870 18.19 16.20
May29 16.51 0.10 ▲ 16.38 16.51 16.36 16.51 161 2,397 17.74 16.02
Jul29 16.32 0.10 ▲ 16.19 16.19 16.18 16.19 24 3,968 17.50 16.15
Oct29 16.37 0.12 ▲ 16.22 16.22 16.22 16.22 1 58 16.30 16.22
Total               118,922 1,164,739    
*Volume includes exchange for physicals.

 

 

ICE U.S. Sugar No.11 – Spreads
Date Spread Date Spread
Mar27 / May27 0.55 Oct27 / Mar28 -0.42
Mar27 / Jul27 0.89 Oct27 / May28 0.52
Mar27 / Oct27 0.88 Mar28 / May28 0.94
Mar27 / Mar28 0.46 Mar28 / Jul28 1.38
May27 / Jul27 0.34 May28 / Jul28 0.44
May27 / Oct27 0.33 May28 / Oct28 0.43
Jul27 / Oct27 -0.01 Jul28 / Oct28 -0.01
Jul27 / Mar28 -0.43 Jul28 / Mar29 -0.49

 

The new week arrived, but very little had changed as trading good off to a slow start. March’27 maintained a narrow band between 18.18 and 18.33 across a tedious morning period in which the only apparent interest came from smaller traders alongside underlying consumer scale buying. Fridays COT report had shown another reduction in the spec/fund holding to +146,031 lots, primarily due to position reduction on the long side, though a smaller number of new shorts were also added, however there was no sign of that changing in any meaningful way today as smaller traders continued to dominate interest into the afternoon. Their efforts helped March’27 up into the 18.40’s but progress stalled when their buying did the same and trading simply developed into a new, slightly higher, band. Highs were recorded at 18.44 prior to small traders closing back out some exposure, leaving the market top sit around 18.30 as it headed quietly towards the close holding on to minor gains. One final round of position liquidation then followed as we headed into the call, and this one sent the price back towards the bottom of the range leading to a slightly lower closing price at 18.21 that leaves parameters unmoved. 

 

ICE Europe White Sugar Futures Contract
Settlement (US$/mt) Open High Low Last Volume O/I Life High Life Low
Dec26 509.60 7.40 ▲ 503.50 516.00 500.30 509.50 15,428 17,721 567.70 393.20
Mar27 517.30 1.50 ▲ 517.50 521.90 514.00 517.20 20,890 69,305 577.40 398.00
May27 518.30 2.50 ▲ 517.00 522.60 514.70 518.70 8,013 32,120 581.80 401.40
Aug27 512.40 0.30 ▲ 513.80 517.70 510.70 512.90 3,253 18,226 574.30 404.30
Oct27 506.70 -0.50 ▼ 509.20 512.10 506.40 507.30 1,114 8,625 565.30 408.20
Dec27 503.40 -0.70 ▼ 506.10 508.50 503.30 504.10 231 4,136 558.20 414.30
Mar28 501.70 -1.00 ▼ 504.50 505.60 501.70 501.70 23 909 552.60 421.00
May28 495.10 -3.60 ▼ 496.40 497.60 496.20 497.30 38 893 542.80 426.30
Aug28 486.80 -2.00 ▼ 488.40 489.60 488.20 489.30 29 628 529.90 431.10
Oct28 479.60 -0.80 ▼ 478.00 481.80 478.00 481.50 15 78 520.00 441.70
Dec28 479.20 1.60 ▲ 483.00 484.10 483.00 484.10 5 6 518.10 468.60
Mar29 480.60 -33.20 ▼ 517.10 517.10 517.10 517.10 1 8 517.10 483.20
May29 477.70 1.60 ▲ 474.20 474.20 473.60 473.60 3 7 517.50 473.60
Aug29 474.70 —   — — — — — — — —
Total               49,043 152,662    
*Volume includes exchange for physicals.

 

 

ICE Europe White Sugar – Spreads
Date Spread Date Spread
Dec26 / Mar27 -7.70 Mar27 / May27 -1.00
Dec26 / May27 -8.70 May27 / Aug27 5.90
Dec26 / Aug27 -2.80 Aug27 / Oct27 5.70
Dec26 / Oct27 2.90 Oct27 / Dec27 3.30

 

 

White Sugar Premium
Date Premium Date Premium
Mar27 / Mar27 115.84 Jul28 / Aug28 125.90
May27 / May27 128.96 Oct28 / Oct28 118.48
Jul27 / Aug27 130.56 Mar29 / Mar29 108.90
Oct27 / Oct27 124.64 May29 / May29 113.72
Mar28 / Mar28 110.38 Jul29 / Aug29 114.91
May28 / May28 124.50    
*Values calculated basis 6:09 PM.

 

It was an inauspicious start to the week with March’27 trading either side of unchanged across the first hour, giving no indication as to a preferred direction of travel. This pattern maintained throughout a very quiet morning where the only movement of interest was being seen by the spot, where Dec’26 found a surge of buying which brought the Dec’26/March’27 spread to -$9.00 just after noon, its highest level in four weeks. Whether related to order flow or the start of a final week squeeze, the movement was certainly striking, and it continued through early afternoon with March’27 following some of the gains and pulling up into the low $520’s. This mirrored what was being seen for the No.11, but while values were holding positively any continuation was proving tricky as buyers largely held to the lower levels and failed to chase upwards. As such the afternoon saw a band held either side of $520.00, with most interest continuing to be seen through the spreads.  The “pull” factor of Dec’26 was also aiding the white premium values, and during the afternoon March/March’27 worked its was towards $116.00 rep[resenting its highest value since mid-September. Dec’26/March’27 saw highs at -$4.70 before slipping back to end the day at -$7.70, still a constructive showing for the spread which will be keenly watched to see whether the receiver looks to bring it back to a premium. MOC selling knocked March’27 back to close at $517.30, a net gain though not of any significance to alter the chart picture.    

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Market chart asset

 

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Jon Whybrow

Jon joined CZ in 1991, working in the Treasury department before moving to join the derivatives team in 1994. Over 30 years Jon has built up significant experience across derivatives markets and products, particularly sugar, and is now Head of Flow derivatives providing market execution services for CZ’s global client base. He is responsible for the market commentaries which are published each day on CZ app.

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