Sugar #11 May’22 

A calm start to the session saw May’22 trading either side of unchanged levels, consolidating yesterdays gains against a calmer macro background with many traders seemingly having now taken a step back as they wait for more significant developments to the east. Slowly the market did make some small gains and by early afternoon a high was recorded at 17.97 though with specs not showing in any noteworthy way so prices fell back away once more. Though there were some light macro gains the picture was far calmer than yesterday and given that sugar has proved mostly unresponsive to the wider world over recent weeks it was to be expected that we continued in the same vein. The flat price extended the narrow range by a few points with lows at 17.82 during the final couple of hours, though buying reappeared for the close and in the end we saw settlement just a single point lower at 17.88.

· March’22 edges nearer to expiry with some continuing strength for the spreads, March/May’22 pushing out to a high at 0.66, the highest level seen since early September, and settling just a single point below at 0.65.

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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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