MAR27-MAR28 Sugar #11 SPREAD (SBH27-SBK28) - WALSH PURE SPREADER
WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 9/10/2026
MAR27-MAR28 Sugar #11 SPREAD (SBH27-SBK28)
Last Wednesday (9/2/26) I wrote about buying the MAR-MAY Sugar #11 Spread. I brought up some of the projections in regard to global sugar deficits from organizations like Covrig Analytics, Green Pool Commodity Specialists and the International Sugar Organization (ISO). I also mentioned that the monsoons they rely on in India are expected to possibly be the lowest in 10 years. India is generally the second largest producer of sugar in the world and almost always an exporter of sugar. This may be the first time they will need to import a significant amount of sugar since 2017-18. The drought in Europe is not helping things and Brazil’s sugar production is also expected to be low.
Today, MAR Sugar #11 made another new contract high and had a new high settlement of 19.75. Sometimes Sugar #11 can be very trendy and it has been on an upward tear. I think it might not be over. Sugar spreads can be very directional, meaning the front month will often lead the way. So, if Sugar #11 rallies, Sugar #11 spreads will commonly go up as well.
Today I am looking at the MAR ’27-MAR ’28 Sugar #11 Spread (ESBH27-ESBH28). I am also looking at the technical side. This spread has not settled below, or even traded below, the 14-day or 21 day moving averages since the end of July.
I am suggesting that we try to buy ESBH27-ESBH28 at 0.71. This is 0.20 below today’s settlement of 0.91, but is still 0.14 above the 14-day and 0.30 above the 21-day. We can be a little patient with this trade, especially if we are already long the MAR ’27-MAY ’27 Spread. If you are not yet long anything in the Sugar #11 market, I would probably raise my bid to 0.81.
If you are able to buy the MAR ’27- MAR ’28 Sugar #11 Spread (ESBH27-ESBH28) at 0.71 :
Risk 0.50 (price of 0.21) or $560 Per Spread to make 1.00 (price of 1.71) or $1,120 Per Spread, plus fees and commissions.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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