• A very quiet sowing from No.11 saw the market tread a similar path to yesterday. Early buying took May’20 up to 10.59 and we remained just beneath the highs on low volumes throughout the morning. Prices fell away a little during the early afternoon, though the most noteworthy action was seen through the spreads with nearby positions remaining under pressure while the rest of the board maintained increasing gains. A run down to new session lows later in the afternoon did nothing to diminish the stability further forward and as we recovered to unchanged for May’20 during the final hour both Oct’21 and Mar’22 were showing solid 30 point gains. While holding little significance within today’s movement the USDBRL did stabilise a little to 5.19 intra-day on news that the health minister has kept his job. Selling returned to May’20 for the close to establish settlement a few points lower at 10.38. 
  • London whites saw a much flatter board than their raws counterpart, concluding within a dollar or so of unchanged across the board. May’20 spreads were weaker once again as we see traders continuing to move out of positions ahead of next week’s expiry with May/Aug’20 printing a narrowest $2.20 before ending a couple of dollars stronger at $4.30. WP values were little changed May/May trading either side of $100 while Aug/Jul nudged out a little towards $96. 
undefined

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.

More from this author