Sugar #11 May’22
Another quiet opening for No.11 was soon forgotten as spec buyers once more pushed upward. Their initial buying served to recover the ground lost yesterday afternoon and returned May’22 into the 19.40’s where progress slowed with better selling begin seen ahead of yesterdays 19.50 high mark. The gains were founded against more than macro support with most other commodities trading lower during the early part of the day and it may well be that the improving BRL and resultant shift in ethanol values and reduction in Brazilian pricing is having an impact upon the near-term view. Ahead of the Americas traders joining the fray prices stalled right around 19.50 though there was no hint of the specs taking any profits, a wise view with the early afternoon brining new buying that sent the price up into the 19.50’s. Scale selling from producers did limit the markets potential to run significantly higher, and while the May/Jul’22 extended out to 0.15 points the quiet nature of this spread over recent weeks will remain a concern to the bulls. During the final hour, a new high for this current move was recorded at 19.65 and with settlement made only a few points beneath at 19.61 the technical picture is positive. Upside targets are now the recent 19.89 high and then last November’s 20.29 contract high mark, levels that the specs will no doubt be determined to explore having added to longs in recent days.