SWEET OR SALTY SUGAR, DEPENDS ON WHICH SIDE OF THE S&D YOU ARE!


As we approach the end of the year, many agricultural producers expect a present and some fireworks. When comes to Agri Commodities, some have already received their presents, some may be disappointed and some may get a bit more still.


As we approach the end of the year, many agricultural producers expect a present and some fireworks. When comes to Agri Commodities, some have already received their presents, some may be disappointed and some may get a bit more still.


The overall investment or risk deployment in Agri Commodities has been gradually reduced during the year, from as many as 1.8 mln lots in Feb 23 to as little as 1.1 mln m/t lots by the end of October 2023. Of course, some commodities are still attracting more “risk on” capital deployment like Cocoa (longer) Coffee and Cotton (short covering) while Sugar had a reduction on nett long positions.


So, despite less “risk on” by investors (also associated with Specs) sugar prices remain strong to stronger implying that they could rise further.


Producers, for the first time in many years, are benefiting from higher prices as “Spec” activity (in/out) and consumer demand (buying/pricing) has kept the market buoyant, but it is the lack of producer “heavy selling” that kept the “powder” dry.


THE OVERALL INVESTMENT OR RISK DEPLOYMENT IN AGRI COMMODITIES HAS BEEN GRADUALLY REDUCED DURING THE YEAR...


8 | ADMISI - The Ghost In The Machine | Q4 Edition 2023


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