Sugar #11 May’22
This week has played out on lower volumes within a narrower range as things settle back down following recent macro led volatility and so a softer opening which saw May’22 trading back down into the 18.50s was largely met with apathy. The lower levels started to attract some consumer interest into the market as so prices were able to recover a touch before entering some prolonged consolidation either side of 18.70. For several hours we appeared set to sleepwalk towards the weekend however the specs had other ideas and with energy commodities trading higher again seized the opportunity to protect long holdings and drive prices upward. The initial drive stalled at yesterdays high mark of 18.97 however there was no willingness to let this slip and over the final couple of hours the persistent buying enabled the market to touch to 19.00 and fill the previous chart gap. The closing stages saw the higher levels maintained and though some pre-weekend liquidation sent prices back a little on the call settlement was positive at 18.93. Overall, the market ends the week still with a broad sideways prognosis though with the geopolitical picture still uncertain much can change, and we watch both this and the macro with interest.