Sugar #11 May’22  

There was early buying for the No.11 today as specs set of in pursuit of last month’s 19.89 high mark. The initial efforts took May’22 through yesterday’s highs to reach 19.81, however the perennial issue remains the lack of depth to the buying with larger specs showing no desire to join the game, and so prices slipped into another quiet sideways pattern within the 19.70’s.The macro had been mildly positive but with no shine sugar appeared content to sit quietly within the early range, the US morning bringing no sign of any fresh spec interest that may have enlivened proceedings. The lack of upside movement triggered a degree of long liquidation with a spike down to 19.54, though once the selling was done the support remerged from day traders and consumer interest which stabilised values away from the lows. Spreads continued to play the same recent range with May/Jul’22 giving back yesterdays gains to trade 0.14 points, with the final couple of hours seeing the flat price return to sleep and another round of sideways consolidation. Settlement at 19.65 leaves the wider picture unchanged, the market still struggling to find the impetus required to challenge 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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