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Friday saw another day of gains in sugar aided by better macro. However, the volume was particularly poor with limited interest from all quarters. The market had opened a couple of points firmer before settling into its usual morning slumbers remaining within a narrow 9 point range until early afternoon when prices started to improve. Prices continued to improve hitting the day’s high mid-afternoon before slipping back to opening levels after failing to break above the previous day’s highs on some day trader liquidation. Some late buying buoyed values slightly with prices settling within the narrow range seen over the past couple of weeks. The NV improved a couple of points to settle at -13 while the VH ended 1 point weaker at -53. In London the weakening of the spreads and WP continued apace as concerns over demand had seen longs liquidating. The QV dropped another $2 to finish at +8.50 while the VZ was also $2 weaker at +3.80. This put the QN WP at 102.60 and the VV WP at 91.30. New York continues to be caught within a narrow trading range holding above 12 cents. Whether it can maintain these levels or even improve does depend on the macro which remains uncertain.
The COT as of the 16th June showed the funds/specs increased their net long position by 16,098 to 47,118. The non-commercials increased their net longs by 13,081 to 22,628 as the gross shorts continue to cover. There was a small increase in the gross longs but it was hardly convincing as the larger funds continue to remain side-lined. The commercials increased their net shorts by 22,193 to 276,990 as trade covered longs and some shorts suggesting limited confidence the market is going to move too much from current levels. The Index funds increased their net longs by 6,095 to 229,872.
Contact the ADMISI Sugar Desk team:
Howard Jenkins, Charles Branch, Kevin Watkins, Steven Trigg
Phone: +44(0) 207 716 8598
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