Bloomberg News

White Sugar Money Managers Double Bets on Rising Prices

February 13, 2012

(Updates with net-long positions in second paragraph.)

Feb. 13 (Bloomberg) -- Money managers more than doubled their net-long positions, or bets on higher prices, in London white sugar futures and options, according to NYSE Liffe, the derivatives arm of NYSE Euronext.

Net-long positions totaled 9,034 futures and options as of Feb. 7, up from 4,128 contracts a week earlier, the weekly commitments of traders report published on the exchange’s website today showed. White sugar for March delivery climbed 2.6 percent in the period on speculation supplies for delivery may be limited before the March futures expire tomorrow.

“With major white sugar exporters like the European Union and India not being able to deliver against Liffe, quantities deliverable against March expiry in London are rather limited,” Fabienne Pointier, an analyst at broker and researcher Kingsman SA in Lausanne, Switzerland, said in an e-mail today. “This could help the London futures to firm up before expiry.”

In cocoa, money managers trimmed their net-long position by 60 percent to 1,774 futures and options as of Feb. 7, the data show. Cocoa slipped 1.7 percent in the period.

Money managers were net-short, or betting on lower prices, in robusta coffee and feed wheat. Net-short positions in coffee totaled 6,873 contracts as of Feb. 7, compared with 6,685 on Jan. 31, while net-short positions in feed wheat stood at 602 futures and options from 480 a week earlier, the data show.

Robusta coffee climbed 1.4 percent in the period, while feed wheat advanced 0.6 percent.

--Editors: Claudia Carpenter, Dan Weeks

To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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