Sugar Market Report for 15 March

Friday saw the market reverse over half the gains of the previous session mainly on a negative macro picture. However, the trading volume was very poor with the market caught within a relatively narrow 70 point range over the past two weeks. The market had opened 7 points lower on a firm USD and never managed to even test unchanged. The market soon dropped further hitting the lows early afternoon as most other commodities sagged lower. Prices then remained within a narrow 11 point range for the remained of the session with little interest from any quarter. Eventually, the market settled near the lows of the day but, at least, it was an inside day. The KN dropped 6 points to settle at +41 while the NV weakened 5 points to +9. In London the KQ ended unchanged at +12.90 while the QV slipped slightly to finish at +10.70. This meant the KK WP ended firmer at 103.90 while the NQ was unchanged at 100.00. It was a turgid session with the market lacking direction and taking its lead from the macro which was under pressure as the USD firmed again.

The COT as of the 9^th March showed that the funds/specs cut their net long position again by 19,047 to 200,673. The non-commercials cut their net longs by 14,914 to 134,309 as expected with prices dropping by nearly 60 points during the reporting period. The commercials cut their net shorts by 26,604 to 445,828 as end users took advantage of the market falling below 16 cents to price. There was also some trade short covering noted. The Index funds also cut their net longs by 7,557 to 245,156.

A Syrian state agency has issued an International Tender to buy 85k tonnes of white sugar according to traders. The General Foreign Trade Organisation said all bids should be received by 14^th April.

This morning the market opened 7 points higher before swiftly dropping back to near unchanged where some support was noted. Currently, prices are 1-2 points weaker in thin volume. The KN and NV are unchanged at +41 and +9  respectively. In early London trading the KQ is a tad firmer at +13.10 while the QV is unchanged at +10.70. The macro is mixed and quiet this morning with crude slightly firmer as is the USD index. Other agricultural commodities are, mostly, slightly lower. The market seems unsure of direction at the moment so further consolidation within the recent range would seem likely. End user pricing below 16 cents but there seems little desire to move above 16.50 for the time being while the USD remains firm.

Contact the ADMISI Sugar Desk team:

Howard Jenkins, Kevin Watkins, Steven Trigg

Phone: +44(0) 20 7716 8598

Email: admisi.sugar@admisi.com

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