Non-commercial traders on the NY 11 contract reduced their net short position to its lowest level in 2018 at 461,300 tons equivalent while Open Interest (OI) was slightly up 6% from the past week at 967,272 lots (or 48,363,600 tons equivalent).

COT - 23 october 2018

With the Brazilian crushing season due to end very early and given that India, the EU and Thailand are expected to produce less sugar than originally thought, fundamentals are likely to help the market post further gains in the coming days and weeks. 

In addition, the results of the Brazilian election this Sunday - and which triggered a strengthening of the Brazilian Real against the US Dollar this morning - may positively impact a further recovery of international sugar prices.