Daily Futures Commentary 5th May 2020

A steadier macro picture encouraged the market to commence a little higher and we remained generally positive throughout a quiet morning. London whites were firmer than the raws and it was the Aug’20 contract which led the way for sugar with white premium values beginning to widen as a result driven by concerns over the availability of deliverable sugars. The arrival of US based specs during the afternoon helped to push No.11 further north, though this in no way detracted from the gains being made by whites with WP values continuing to accelerate ahead, reaching $120 for the Aug/Jul’20 by the closing call. The waves of spec and algo buying meanwhile helped Jul’20 to a daily high of 10.86, still some way shy of Fridays 11.01 high and representing a second successive inside day. We fell back into the range during the final hour as specs liquidated some intra-day longs however still concluded positively with Jul’20 settlement at 10.78.

 No.11 Futures