Sugar Market Report for 17 March

The market improved yesterday testing the recent highs but was unable to break higher and ended in the middle of the recent range in lacklustre volume. The market had opened 8 points firmer in very thin trading volumes but soon fell back and remained either side of unchanged for the next three hours caught in a narrow 8 point range. However, as US traders got to their desk prices started to swiftly improve 35 points over the next hour and reaching the resistance at 16.55. Again the buying dried up as resistance was hit with prices soon retreating giving up some of the gains by settlement ending bang in the middle of the day’s range. The KN improved 3 points to end at +42 while the NV was also 3 points firmer at +12. In London the KQ did improve nearly $2 to finish at +15.20 while the QV was also $1 firmer at +10.90. Continuing concerns over shipping issues and lack of containers continue to support the front month. The KK WP ended slightly firmer at 104.00 while the NQ was slightly weaker at 98.10 but interest was very limited. The market continued to plough over the same range seen for over two weeks unable to find the buying ammunition to break higher but continues to be well supported from 15.90.

Pakistan’s International tender for 50K tonnes of white sugar closed yesterday with two offers made according to Reuters. The best reported offer was $544.10 C&F from Al Khaleej with other offer from Sucden. The TCP has not made any decision as yet.

Brazil’s Cosan CFO said yesterday that the company plans to list the joint venture with Raizen as a priority making more sense since the acquisition of Biosev. This follows Cofco announcement earlier in the week that they had hired banks to advise on a plan to merge Cofco International with some domestic businesses before a listing of shares in the new entity later this year.

This morning the market opened 7 points lower before dropping another 4 points. Currently, the spot month is 6 points lower while the rest of the board is around unchanged. The KN is 5 points weaker at +37 while the NV is unchanged at +12. In early London trading the KQ is a tad firmer at 15.30 while the QV is slightly weaker at +10.60. The macro is quietly mixed this morning with crude a tad firmer as is the USD index. The BRL ended yesterday virtually unchanged against the USD at 5.62. It would appear from early trading that the market remain resolutely range-bound with support at 15.90 and below while resistance at 16.55 and above. However, as demonstrated yesterday, there is little resting selling until this resistance so prices may remain volatile within the range as day traders remain the main players. However a break above the resistance could trigger some buy-stops which could quickly see the market gain another 20 points or more.

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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