Oct’22 traded as high as 18.46 on the opening however the market quickly cooled to spend most of the morning nursing modest gains as the market struggles to find a footing following last week’s losses. Friday evenings COT report showed that the spec net long had further reduced to 59,575 lots, with more likely to have come off since against additional liquidation / new selling, however the specs are not done yet and as we moved into the busier afternoon period, so the pressure started to build again. Over the course of a couple of hours the price was pushed down to another new low for the move at 18.13, filling in yet more consumer pricing along the way with the lack of macro support continuing to impact with the fundamental bias remaining negative. Of course, the movements downward have not been all one way and so as some short covering from day trader/algo emerged, so the market pinged back up through the range to 18.40 before sentiment sent the price lower once again during the final hour. Settlement was eventually made at 18.26 to maintain the pressure for another day, with more of the same anticipated 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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