Sugar #11 May’22
Higher opening prints were quickly erased and May’22 was soon struggling in the 17.70’s with buyers suddenly hard to find. The contrast to yesterday’s performance was stark with the reaction to sanctions imposed upon Russia sending commodities lower in a continuation of yesterday afternoons activity. Things then started to level out and with consumer pricing appearing in better volume ahead of the series of lows situated either side of 17.50 that have provided support over recent weeks and as we moved into the afternoon prices were able to lift back up above 17.80. Macro woes meant that ant spec/day trader interest was now being driven from the short side and so it was that prices once more slipped back downward with the move working prices further into the trade/consumer scales to register a low at 17.56 during the final hour. There was no apparent desire to fight against the tide however some pre-weekend position squaring (wise give the current instability) ensured a settlement value a few points away from the lows at 17.60. Support will be expected to remain through into the 17.40’s though much will be dependant upon developments in Ukraine over the next couple of days.
March’22 open interest continues to fall away and now stands at 37,541 lots. March/May’22 was calmer today and ended just a couple of pips lower at 0.39 points and we head into the final day of trading on Monday with the numbers suggesting that most traders are well aligned ahead of expiration.