Sugar #11 Mar ’22
The day commenced very slowly with initial buying quickly diminishing to leave March’22 edging along near to unchanged for the first couple of hours. There was less interest from specs/day traders than of late with the recent double failure at 20.10 discouraging another attempt and their concerns were exposed during the later morning as a move to new session lows triggered some sizable long liquidation to send the price down to 19.52. Once the selling was concluded things settled back down and prices returned to consolidate towards the centre of the morning range however with March/May’22 showing fresh vulnerability as it struggled to recover very far from its morning 0.18 point low the recovery stalled. Bulls will have been hoping for some positive news from the latest UNICA data for 2H October, however it came out higher than estimates showing 17.023mmt cane / 0.858mmt sugar / 27.04% sugar mix / ATR 142.82 kg/t and while it had no significant downward impact prices did slip back into the 19.60’s once more. The sideways conditions prevailed for the rest of the day though the final stages did see a renewed downward bias as we dipped within a few points of the morning low. March’22 settled at 19.60 and though we traded back up a touch on the post against some end of day position squaring the overall performance was disappointing as it leaves us still firmly ensconced within the last months range.
Sugar #5 Mar2
The session started with some calm trading for March’22 was we traded either side of unchanged levels on light volumes, once again looking toward the macro for guidance. The calm was broken later in the morning in quite dramatic fashion as a slide beneath yesterday’s lows brought with it some spec liquidation, and with buyers suddenly few and far between the spike lower extended to $503.20 before some consumer pricing and short covering emerged. With white premium values remaining steady the recovery took us back up toward the $509 area early in the afternoon, but despite a firmer macro things then became trickier as the refusal of No.11 values to track back up limited our own progress. There was no significant movement in the flat price with the afternoon seeing us meander aimlessly, while the Dec’21/March’22 roll was also fairly orderly as the spread narrowed marginally to $2.00. Some price erosion during the final hour saw March’22 trading back down to $504.00, settling at $504.70 to undo any recent technical progress and leave us right back where we sat late last week.