A calmer morning saw Jul’20 consolidating the recent gains and position itself in the 10.90’s ready for a new look at the recent 11.01 high. It took until the early afternoon for the momentum to build however a push from specs sent the market up into fresh ground, triggering some fund buy stops in the process as we reached 11.18 before pausing. Nearby spreads were also gaining in strength once again and we saw Jul/Oct return to a small premium where it remained for the rest of the session. With macro strength again being led by increases in crude values we pushed further through producer pricing to reach 11.30 until a correction into the range took place against some spec/algo long liquidation as the macro stumbled briefly following the release of the oil inventories. Still the market gathered itself once more and holding comfortably above 11c the final two hours proved to be calmer and ensured a positive close which maintains the recent technical strength. 

N.o 11 Futures 

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ICE Futures U.S. Sugar No.11 Contract

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ICE Europe White Sugar Futures Contract

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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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