An early bounce in response to the macro saw May’20 soar to 10.67 though of course this was still some way shy of the highs seen on yesterday afternoons price spike. A period of relatively mundane trading then ensued as the market looked to consolidate above 10.50 through the rest of the morning. The gains started to erode during the afternoon with the USDBRL once again giving cause for concern is it weakened yet further to record a new all-time low of 5.3230. In an otherwise quiet environment we ultimately gave back all of the gains and by the final hour nearby prompts were showing a small debit to match the opening lows. This placed us in the middle of the CRB which was now rather mixed, though well away from crude which continued to show gains despite talk that the mooted 10m barrel per day cut may still not be sufficient to stabilise the market moving forward. By the close we were showing a token gain as May’20 settled at 10.31 (+2).
London whites came under some pressure once again this morning with May’20 pushed lower to narrow both the spread and WP values as we move nearer to the expiry on 15th April. May/Aug’20 narrowed from $18.60 to $11.60 before stabilising back towards $14 later in the session while May/May pushed down beneath $104 at one stage before recovering to $110, and in the process took the Aug/Jul WP beneath $90 for a brief period though that too pulled back to $96 late on. Closing values were little changed for all except the spot May’20 which settled at 336.50 (-4.10).