Money Managers Boost Bearish Bets on White Sugar by 89%

Money managers boosted bets on lower prices of white sugar traded in London by 89 percent in the week ended May 21 after turning bearish on the commodity a week earlier, according to NYSE Liffe, the derivatives arm of NYSE Euronext.

Net-short positions, or wagers on a lower market, totaled 7,713 futures and options in the period, the Commitments of Traders report published on the exchange’s website today showed. That compares with 4,073 contracts a week earlier and a net-long position of 1,351 contracts in the prior seven-day period. Sugar retreated 0.4 percent in the week.

The premium white sugar commands over the raw variety will slide 15 percent by the end of next month as Thailand, the world’s second biggest exporter, and Mexico ship record amounts of refined product. The price gap between the two varieties will narrow to $91 a ton by the end of June, according to the mean of eight trader estimates compiled by Bloomberg.

In robusta coffee, money managers boosted their net-long position by 13 percent, exchange data showed. Net-long positions rose to 5,308 futures and options from 4,684 contracts a week earlier. The beans used to make instant coffee and espresso fell 2 percent in the period.

Money managers’ net-long position in cocoa climbed to 42,896 contracts from 42,134 lots a week earlier, the data showed. The beans rose 0.1 percent in the period.

In feed wheat, money managers reduced their net-short position to 378 contracts from 396 a week earlier. The grain tumbled 7.3 percent in the period.

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