The market remained, essentially, range-bound yesterday in thin trading volume. The market had opened 5 points higher and, what turned out to be, the high of the day on light market on opening buying. Once done prices soon slipped lower as the spot N-21 came under renewed selling pressure on long liquidation. Prices soon dropped to the lows of the day before recovering back to unchanged. Price then remained within a narrow trading for the rest of the session with limited interest. The NV, initially, weaken to a new low of -46 but slowly recovered to settle 7 points firmer at -31. The OI in N-21 dropped again to just 14,659 lots with 15,786 lots traded yesterday continuing to suggest a small delivery. The VH ended unchanged at -26. In London the Q-21 continued to weaken against the rest of the board with the QV dropping over $3 to finish at -24.10. However, the VZ did improve for second day to end at -4.90. This meant the WP also improved with the VV WP ending at 69.80 and the HH WP at 73.10. Despite chatter of cold weather across southern Brazil and continuing concerns over dry weather the market remained with in the range of the past month. The weakness of the structure continues to be a negative factor deterring the funds from buying.
As expected after the prolonged dry conditions across Brazil’s CS analysts are starting to lower their production ideas. Most were still around 35 million tonnes but Czarnikow reported yesterday that they have revised their estimate down to 34.10 million tonnes due the amount of cane available dropping to 535 million tonnes the lowest since 2012. They said rainfall between January and June was 43% below normal which had reduced agricultural productivity of the cane fields by around 12% so far. This drop in productivity will, inevitably, lead to lower raw sugar exports.
This morning the market opened 1 point higher in limited early volume before slipping into the negative column. The NV is quoted weaker at -39/-35 while the VH is unchanged at -26. Currently, flat price is around unchanged. In early London trading the QV is a tad weaker at around -24.20 while the VZ is around unchanged at -5.00. The macro is a mixed picture this morning with crude unchanged and grain/soya mostly a tad lower. USDA report later today may spark these market into action this afternoon. The USD index is marginally higher. The N-21 looks likely to expire without any fireworks and the delivery small. The market looks set to remain range-bound but a push higher looks to be more likely than any collapse unless the macro turns significantly negative. The situation in Brazil’s CS will remain the centre of attention for the market with other analysts likely to start to lower sugar production estimates.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
Sugar Market Report for 30 June
Good morning,
The market remained, essentially, range-bound yesterday in thin trading volume. The market had opened 5 points higher and, what turned out to be, the high of the day on light market on opening buying. Once done prices soon slipped lower as the spot N-21 came under renewed selling pressure on long liquidation. Prices soon dropped to the lows of the day before recovering back to unchanged. Price then remained within a narrow trading for the rest of the session with limited interest. The NV, initially, weaken to a new low of -46 but slowly recovered to settle 7 points firmer at -31. The OI in N-21 dropped again to just 14,659 lots with 15,786 lots traded yesterday continuing to suggest a small delivery. The VH ended unchanged at -26. In London the Q-21 continued to weaken against the rest of the board with the QV dropping over $3 to finish at -24.10. However, the VZ did improve for second day to end at -4.90. This meant the WP also improved with the VV WP ending at 69.80 and the HH WP at 73.10. Despite chatter of cold weather across southern Brazil and continuing concerns over dry weather the market remained with in the range of the past month. The weakness of the structure continues to be a negative factor deterring the funds from buying.
As expected after the prolonged dry conditions across Brazil’s CS analysts are starting to lower their production ideas. Most were still around 35 million tonnes but Czarnikow reported yesterday that they have revised their estimate down to 34.10 million tonnes due the amount of cane available dropping to 535 million tonnes the lowest since 2012. They said rainfall between January and June was 43% below normal which had reduced agricultural productivity of the cane fields by around 12% so far. This drop in productivity will, inevitably, lead to lower raw sugar exports.
This morning the market opened 1 point higher in limited early volume before slipping into the negative column. The NV is quoted weaker at -39/-35 while the VH is unchanged at -26. Currently, flat price is around unchanged. In early London trading the QV is a tad weaker at around -24.20 while the VZ is around unchanged at -5.00. The macro is a mixed picture this morning with crude unchanged and grain/soya mostly a tad lower. USDA report later today may spark these market into action this afternoon. The USD index is marginally higher. The N-21 looks likely to expire without any fireworks and the delivery small. The market looks set to remain range-bound but a push higher looks to be more likely than any collapse unless the macro turns significantly negative. The situation in Brazil’s CS will remain the centre of attention for the market with other analysts likely to start to lower sugar production estimates.
Contact the ADMISI Sugar Desk team:
Phone: +44(0) 20 7716 8598
Email: admisi.sugar@admisi.com
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2024 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.