A calm opening provided the platform for day traders to pursue the market once again from the long side with a push back up into the 19.90’s soon occurring. It was a familiar pattern which developed as morning support ensured that prices continued positively ahead of the busier afternoon period, although when the time came there was no real interest from the specs to continue and prices fell back. The macro had been rather mixed and so was providing no guidance, and with the negative leaning fundamentals receiving further credence from India which continues to enjoy a strong tail the market headed back lower. The decline gathered pace later in the afternoon to see Jul’22 to a low at 19.45, however much of the selling appeared to be still coming from the day traders and algos (who must be having a torrid time) with the final hour seeing a short covering bounce back to unchanged levels. Jul’22 settled only marginally lower at 19.75 and more of the same appears the likely route forward having now spent a week consolidating this band either side of 20c.

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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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