Despite none of the prime macro influencers trading positively this morning we found some opening buying that pushed nearby values up by around 20 points before easing due to the lack of follow up interest. Supportive buying was present near to overnight levels as we slipped back and provided the basis for prices to push ahead again late morning and provide a platform from which to try and build moving into the busier US morning period. Despite the macro remaining neutral there was some desire from longs to try and force the price beyond 20c once more and their efforts too Jul’22 to 20.10, however this fell short of the levels achieved on Tuesday and Wednesday and the lack of sup[port from elsewhere forced long liquidation that sent prices back to the range once more. Spread activity was moderate with the continuing Jul/Oct’22 discount not backing up the flat price strength of the last week, Jul/Oct’22 ending the week valued around -0.12 points. Outright values remained to the centre of the range heading in towards the close, with Jul’22 ending the week at 19.95. Tonight’s COT report will provide some insight as to the level of new fund/spec longs added during the early part of this week and may well play a part in dictating the next move with that sector still dominating activity.

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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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