The opening was somewhat reminiscent of last nights close as we spiked a similar range on immediate buying, May’20 trading up from 10.68 to 10.82. It soon rallied a little further to reach 10.86 and match last night’s post close high, however macro concerns are never far away and the ensuing period saw the price trickle back down towards unchanged levels. With ethanol parity remaining a considerable way below the sugar price due the respective weakness of both crude oil and the USDBRL, selling continues to emerge and this sent prices down to further new lows / contract lows, May’20 reaching 10.44 and Jul’20 10.41. Still the spread was at a premium however showing remarkable resilience from the structure given that the flat price has fallen by some 5c in a virtual straight line. Prices recovered back above unchanged during the afternoon on possible short covering / macro recovery, but soon slipped back once more with USDBRL at 5.15 (though off the daily 5.21 low) continuing to exert negative sentiment. The final two hours were something of a rollercoaster at the lower end of the range, eventually seeing late buying once again to minimise the daily losses.
