Sugar #11 Mar ’22
Recent calmer activity has caused many traders to retreat from the market again and although we saw some light buying which took March’22 up to 19.78 during the first hour we soon returned to type, sitting either side of 19.70 for around 3 hours on very light volume. Despite a marginally weaker macro we did see a small burst of enthusiasm from smaller specs take us up to 19.79 early in the afternoon however this failed to glean any significant momentum and the price eased back once more. There was limited spread activity again despite nearby values widening by a couple of points, leaving any action in the hands of the small specs who looked to make the best of a bad hand in forcing a return visit to 19.79 later in the afternoon. On this occasion their efforts ended in a far more rapid decline to 19.66, with longs being tossed out beneath 19.70 as they admitted quick defeat. The closing stages played out on the 19.60’s with Oct’21 concluding an incredibly slow session at 19.65, and despite slipping to 19.60 on the post close it remained an inside day which signals continued dull trading ahead.
Sugar #5 Mar ’22
Following on from yesterdays inside day it seemed during this morning that we were on for a repeat within a yet tighter band, March’22 holding a range between $512.50 and $510.00 on incredibly low volumes. This pattern was broken early in the afternoon as some light buying interest from our friends on the No.11 market pulled us to new daily highs above $513.00, action which by no means exciting did at least pull in some white premium buying and take the March/March’21 back to $77. A dip followed before a second push to reach $513.60 ensured that we prevented another inside day by the slimmest of margins, though having achieved this a fall back to $511 left things stuck back within the range heading towards the final hour. All remained quiet until some choppy MOC activity emerged, the late position squaring seeing March’22 settle at $510.90 before slipping to $509.00 as we headed out.