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SUGAR UPDATE The dynamics of the sugar market have done a complete about face since the end of September. The market is up seven weeks in a row, with spot prices now sitting mid 15 cents. Whilst the macro background has certainly become more positive, most recent price action is more indicative of traders’ positions being squeezed out rather than a belief that we are back on the way to 20c. The bullish arguments are, rain in Brazil will interrupt the harvest, Chinese, Thai and Indian production will all be lo...

SUGAR UPDATE The sugar market seems (once again) to be trapped in a range. This time however the range is significantly higher than the lows and there are reasons to suggest we may continue to move higher. The new range is 13.70 to 15.50 with end users seen buying before 14c and producers selling over 15.25. Like most other times there are competing forces. On the bullish side, rain is threatening to hamper what remains of the Brazilian crop. Sugar production seems set to end around 30.5mmt down from earlier es ma...