Sugar #11 Mar’22
Higher opening prints were erased within seconds as spec led selling pushed prices down through a vacuum to test support ahead of 18.00. Lows were recorded at 18.05 before a short covering rally emerged to pull values back upward in a move which gathered momentum to reach a daily high at 18.40 toward the end of the morning. That the market was struggling for direction was no surprise given a mixed macro environment which saw many products trading lower but the energy sector holding steady against the ongoing concerns in the Ukraine, and this uncertainty eventually seemed to unnerve specs who pushed lower again during the afternoon. The fall did not initially damage the March/May’22 spread which though seeing smaller volumes post-index roll was trading upward to 0.54 points, though as March’22 recorded a new low at 18.01 later in the afternoon so it started to narrow once again. Much of the late afternoon was played out near to the lows, however with support holding firm there was some late short covering which pulled prices back up a touch and left settlements at 18.12 (March’22) and 17.66 (May’22), a spread of 0.46 points. Recent movements provide continuing support in the upper 17’s against the chart congestion as we continue to play within this same 17.70/18.70 band that has prevailed through February.