Daily futures Commentary – 21 February 2020

  • Following a very slow morning during which we edged along near to unchanged levels the market sprung to life with a push back above 15c against spec buying from Americas based entities. This bought in some algo activity alongside and for a brief period it seemed as though we may mount a challenge of the weekly 15.20 high/recent 15.29 high, however some moderate selling in front of this area soon erased the possibility of such excitement. Instead the afternoon developed in a similar a sideways pattern to the morning, just at a slightly higher level with May now nudging either side of 15.10 in the most tedious way. Ongoing BRL weakness is undoubtedly adding to the overhead resistance, though having seen the USDBRL at 4.4061 early on there was a marginal recovery to 4.38 by later afternoon. Brazil now heads into the carnival holiday for the first part of next week so it will be interesting to see how that impacts upon overhead pricing. Closing values saw healthy gains recorded just beneath session highs, remaining well poised to test higher should the fundamental view on Thailand/India continue to remain positive.

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