Sugar #11 Mar ’22
March’22 popped up to 17.99 on opening buying and though the price edged back down to 17.85 during the first hour the upward path soon resumed to see price back above 18c midway through the morning. While recent activities have been dictated by improving crop news and the continuing long liquidation from specs, they have taken us near to ethanol parity and so it was today that a more familiar path of tracking the macro resumed with the selling having eased considerably. The price extended to 18.14 ahead of the Americas starting their day and though things then cooled for a few hours the price remained firm (by recent standards) as it meandered calmly either side of 18c. With most of the buying being found at the front of the board there was a significant improvement in March’22 and May’22 spread values through the day, and highs were recorded for March/May’22 at 0.31 points, March/Jul’22 at 0.50 points and March/Oct’22 at 0.54 points. Renewed buying from the shorter-term spec players sent March’22 up to 18.21 during the final couple of hours and while selling was not overly sizable the lack of any bigger players joining to bolster their interest led to the move stalling with consolidation ensuing at the top of the range as the close approached. End of day position squaring pulled values back a touch further to close at 18.11, a positive conclusion which could provide impetus to test first technical resistance in the 18.46/18.52 area if it can be maintained.
Sugar #5 Mar’22
Having pulled up from recent lows during the final part of yesterdays session we saw a continuation of the positivity with March’22 pushing up above $485.00 from the get go and maintaining gains through the early part of the day. This led more buying to emerge to take us through the opening mark and on to $487.30midway through the morning before slipping back into the range as day traders chopped around. On quiet trading we then proceeded to meander generally sideways for a few hours with marginal new highs not being maintained with the $485.00 area seeming to be the point at which the market found comfort. Though the flat price was quiet we were seeing some positivity within the spread structure, and this combined with a positive macro to encourage more buying to the fore later in the afternoon that took March’22 onward to reach $490. Daily highs were posted at $491.50 as we moved into the final hour, widening the recently resurgent white premium values further to see March/March’22 above $90, and though some late position squaring was seen the overall picture was positive as March’22 ended the day at $489.80.