Daily Futures Commentary 20th April 2020

The new week saw uncertainty return to the market as prices slipped back down to the lower end of the recent range to undo virtually all of the recovery made during the second half of last week. The tone was set on the opening as Jul’20 traded down from 10.55 to 10.38 within minutes. Negative macro factors were no doubt having an impact upon spec and algo activity and in the range bound conditions this proved a major driving factor. The macro was being exaggerated by a technical move that saw May’20 WTI futures trading down to $4 (at time of writing) on its penultimate trading day. This placed it at a huge discount to the rest of the board (which was merely around 10% lower) but illustrates how refiners are exiting the market as storage fills, with further weakness potentially following while the impact of covid-19 dictates market forces moving forward. Ongoing Covid concerns were also weighing heavy on the BRL where concerns over its spread and policy from Bolsonaro saw the USDBRL back to 5.30 and within a few pips of its all-time low. With all this in the background No.11 did rather well to hold above recent lows, reaching 10.03 (K20) and 10.22 (N20) intraday, though with settlement only just above these levels a further look lower seems likely to follow.        

No.11 Futures

undefined

Sign Up For Your Free Account On Czapp

Want to receive free tailored notifications straight to your inbox?

Join Czapp
SAF pode ser um impulsionador de demanda para etanol e milho

SAF Could Create Demand Driver For Ethanol, Corn

  • If SAF production can be scaled up, it will create a major new demand driver for corn ethanol.
  • But US authorities are lagging behind in finalising guidelines.
  • A Brazilian company has been given the green light to produce SAF from corn ethanol.

Frank Zaworski

2 weeks ago

3 min

India: Sugar vs Ethanol? 13th March 2024

  • Domestic sugar prices have weakened.
  • The ban on B-molasses means processors must use C-molasses to produce ethanol.
  • Mills pressuring the government for support with revenue generation.
Adelia Lei

Samia Ohiduzzaman

2 weeks ago

1 min