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Sugar Market Report for 22 December

Good morning,

Yesterday saw the market start to build some support at 18.50 after the near 90 point collapse over the previous two sessions. The market had opened 9 points firmer and quickly gained another 5 points on market buying against a generally positive macro picture. However prices soon dropped back to unchanged once this early buying dried up. Prices did recover slowly only to drop back early afternoon to hit the lows of the day. However, decent buying was noted at 18.60 and below which eventually triggered some more robust short covering which saw prices improve 20 points over the final third of the day with the highs being hit during settlement. It was an inside day which suggests the worst may have been seen unless the macro dictates otherwise. The HK improved 3 points to end at +37 while the KN was 2 points better at +27. In London the HK was firmer at +4.20 as was the KQ ending at +4.10. This meant the HH WP ending stronger at 78.90 while the KK WP was unchanged at 82.90, however there was little interest with no block trades.

There is limited fresh fundamental news around as traders and analysts close their books for the festive holidays. The macro continue to dominate proceedings as the world continues to fret over the spread of the Omicron variant. Despite all the sugar market will see another production deficit this season so it is reasonable assumption that the market is probably under-valued at the moment. However, the Omicron story is probably far from over with more restrictions possible after Christmas.

This morning the market opened 6 points firmer before improving another 4 points. Currently, the market is 9-10 points firmer. The HK is unchanged at +37 while the KN is 1 point weaker at +26. In early London trading the HK and KQ are virtually both unchanged at +4.30. The macro is generally slightly positive with most commodities marginally higher. The USD index is also a tad firmer while the BRL ended weaker at 5.75 last night. More consolidation likely to be seen today with an up-side bias assuming no deterioration in the macro. The chart gap between 18.95 and 19.01 is the next upside target but interest is likely to remain muted.

 

Christmas and New Year market hours

  • 24th December (Christmas Eve): Both New York and London Sugar Closed
  • 27th December: NY Sugar open (late opening at 12:30 London time) London Sugar closed.
  • 28th December: Normal hours for both New York and London Sugar
  • 29th December: Normal hours for both New York and London Sugar
  • 30th December: Normal hours for both New York and London Sugar
  • 31st December: Normal hours for both New York and London Sugar
  • 3rd January: NY Sugar open (late opening at 12:30 London time) London Sugar closed.

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.

© 2021 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.

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