REPORTS

The trouble still lies in the fact that whilst sugar production may be reduced, there is still much pricing to be done on what has already been produced. It seems the market is locked in a stalemate with producers waiting to pounce on any speculative short covering rally but continuing reluctant to chase prices down. The Fund/speculator continues stubbornly net short and any buying has come from those who are short near to current levels. We suspect these shorts will only be added to if the current range is breached on the downside, i.e. under 13.70. In the meantime , it has become a “jobbers” market and the trade seem unable to sell physical sugar at current levels with end users anticipating further weakness. The result is a dull, range-bound impasse.