Sugar #11 May’22

A wild start to the day saw May’22 swing from 19.33 to 19.12 within the first few minutes on frankly moderate volume before settling down to consolidate either side of 19.20 throughout a calm morning. The macro was proving more mixed today with the energy sector giving back some of yesterdays gains, a factor which discouraged the specs from further adding to longs and so enabling the sideways pattern to continue. There was no discernible selling on show aside from overhead producer scale and this enabled prices to continue along quietly as we moved into the usually busier afternoon period. Volume barely increased however and though there was a small nudge up to 19.30 at one stage the opening highs were never troubled. In the quiet conditions the May’22 spreads were starting to show some struggle once more, indicating that the front month spec interest is crucial to their stability, and by late afternoon we saw May/Jul’22 trading all the way back to 0.05 points premium. Just as the opening highs were not troubled so it proved for the lows also as a final hour slide stalled above 19.12 meaning that we had spent the entire day within the first 5 minutes range. Settlement was made at 19.15 to conclude a tedious session and we hope for something of greater interest tomorrow.

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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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