A slow morning was spent holding onto moderate gains, and with no fresh news this was a solid showing given that other macro influences were continuing to trend lower. All remained calm until the arrival of Americas traders with specs causing some volatility between 18.75/19.00 before the market was able to solidify and continue its trek higher. As the day progressed, we were increasing seeing other markets (Ags / energy) erase their own losses and begin to turn positive, and while their movements were not comparable to the scale of gains being seen for No.11 they provided a timely boost to further encourage spec buying. It was not just the flat price that was firmer with buoyant spreads seeing Oct’22/March’23 trading up to -0.11 points and March/May’23 extending to 0.79 points. By late afternoon Oct’22 had moved above last Friday’s mark to reach a new high for the current recovery at 19.20, and despite some late position squaring the closing level was solid at 19.14. Overall, this changes little in the wider scheme of things though does provide encouragement to longs who are looking to push further up through the range.

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Jon Whybrow

Jon joined CZ in 1991, working in the Treasury department before moving to join the derivatives team in 1994. Over 30 years Jon has built up significant experience across derivatives markets and products, particularly sugar, and is now Head of Flow derivatives providing market execution services for CZ’s global client base. He is responsible for the market commentaries which are published each day on CZ app.

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