Sugar #11 May’22
Opening buying started the day on a positive footing and once the early choppiness had subsided the May’2 contract settled down to consolidate a tight range in the low 17.80’s. The market has been confined to a tight range throughout this month however with the macro moving increasingly to the foreground as tensions rise over Russian “peacekeeping” moves in the Ukraine so other markets, notably crude, are of significant interest. One may not have believed it as sugar continued sideways, the recent lack of movement having seemingly killed the enthusiasm toward it regardless of activities elsewhere, and so it was that despite some marginal upward movement to 17.93 early in the afternoon the market remained confined to the range throughout. There was more movement for the March’22 spreads as the spot month moves into its final week of trading, with the March/May’22 dipping to 0.52 points before finding some aggressive buying during the final couple of hours to extend the recent rally to 0.61 points. Closing values were at the upper end of an admittedly narrow range at 17.89, and should the macro remain firm and encourage buyers in it may provide the impetus to test the early month highs at 18.13 in the coming days.