The market ended slightly weaker on Friday as the structure continued to weaken. However, it was another quiet day with limited trading volume. The market had opened unchanged but then immediately improved 14 points on some solid market buying into limited selling which saw the highs of the day hit within the first five minutes of the session. However, this aggressive buying was short lived with the market soon slipping back to unchanged. Prices slowly eased lower throughout the morning in limited volume as the N-21 lost more ground to the rest of the board. The lows of the day were hit just as US traders got to their desks but with good support seen at the lows of the previous session prices soon improved pushing back towards the highs. However, this speculative buying eventually dried up with prices easing back by settlement with the front two months ending in the negative column. The NV slipped another 4 points to end at -7 while the VH also weakened slightly to end at flat. In London the QV improved slightly to finish at -2.90 while the VZ improved back to a slight premium of +0.60. This meant the WP improved with the NQ finishing $2 firmer at 82.00 while the VV was also a tad firmer at 79.90. The market appeared unsure of direction with macro positive – and the BRL improving as the USD took a tumble on poor unemployment data while the weakening of the front spread suggests adequate supplies meeting with limited short term demand.
The COT as of the 4th May showed that the specs/funds cut their net long position by 8,409 to 241,715. This was in line with expectations as the market had dropped nearly 130 points during the period although had pulled off the lows later in the reporting period. The non-commercials cut their net longs by 10,128 to 180,286 as some of the shorter term funds cut longs. The commercials saw the net short position drop 8,865 to 483,390 as both longs and shorts cut position – probably more a consequence of the K-21 expiry and general position squaring. The Index funds cut their net long position by a minimal 456 to 241,675.
This morning the market opened 14 points lower on a weaker macro picture but soon improved slightly with prices currently around 5 points weaker. The NV is unchanged at -7 while the VH is 1 point weaker at -1. In early London trading the QV and VZ are near unchanged at -2.70 and +0.30 respectively. The macro is slightly weaker this morning with most grains/soya down. Crude is slightly firmer while the USD index is a tad firmer after the big losses of last Friday. The market appears unsure of direction at the moment – concerns over Brazil and EU will continue to persist while the macro will continue to influence the short term. However, the weakening of the structure cannot be construed as bullish and may eventually weight on the market. Nevertheless, any significant drop would seem unlikely with good support now building at around 17 cents. While the producers are well priced the end-users remain poorly prices (although better than a couple of months ago) they will see any weakness as an opportunity to price
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.
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 10 May
Good morning,
The market ended slightly weaker on Friday as the structure continued to weaken. However, it was another quiet day with limited trading volume. The market had opened unchanged but then immediately improved 14 points on some solid market buying into limited selling which saw the highs of the day hit within the first five minutes of the session. However, this aggressive buying was short lived with the market soon slipping back to unchanged. Prices slowly eased lower throughout the morning in limited volume as the N-21 lost more ground to the rest of the board. The lows of the day were hit just as US traders got to their desks but with good support seen at the lows of the previous session prices soon improved pushing back towards the highs. However, this speculative buying eventually dried up with prices easing back by settlement with the front two months ending in the negative column. The NV slipped another 4 points to end at -7 while the VH also weakened slightly to end at flat. In London the QV improved slightly to finish at -2.90 while the VZ improved back to a slight premium of +0.60. This meant the WP improved with the NQ finishing $2 firmer at 82.00 while the VV was also a tad firmer at 79.90. The market appeared unsure of direction with macro positive – and the BRL improving as the USD took a tumble on poor unemployment data while the weakening of the front spread suggests adequate supplies meeting with limited short term demand.
The COT as of the 4th May showed that the specs/funds cut their net long position by 8,409 to 241,715. This was in line with expectations as the market had dropped nearly 130 points during the period although had pulled off the lows later in the reporting period. The non-commercials cut their net longs by 10,128 to 180,286 as some of the shorter term funds cut longs. The commercials saw the net short position drop 8,865 to 483,390 as both longs and shorts cut position – probably more a consequence of the K-21 expiry and general position squaring. The Index funds cut their net long position by a minimal 456 to 241,675.
This morning the market opened 14 points lower on a weaker macro picture but soon improved slightly with prices currently around 5 points weaker. The NV is unchanged at -7 while the VH is 1 point weaker at -1. In early London trading the QV and VZ are near unchanged at -2.70 and +0.30 respectively. The macro is slightly weaker this morning with most grains/soya down. Crude is slightly firmer while the USD index is a tad firmer after the big losses of last Friday. The market appears unsure of direction at the moment – concerns over Brazil and EU will continue to persist while the macro will continue to influence the short term. However, the weakening of the structure cannot be construed as bullish and may eventually weight on the market. Nevertheless, any significant drop would seem unlikely with good support now building at around 17 cents. While the producers are well priced the end-users remain poorly prices (although better than a couple of months ago) they will see any weakness as an opportunity to price
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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