• A rather mundane session saw the market stall in front of the overhead producer selling. The early resistance at 15.14 proved to be the session high with values initially consolidating a small way beneath before slipping just south of 15c as the arrival of US traders brought with it some additional selling. Specs were quiet though it felt as though any algo activity was driven from the short side and so ensured that any hope of looking higher was extinguished. As with any lower day the dialogue through the newswires turned negative, citing the ability of Brazilian producers to turn back to sugar now that we are above Ethanol parity, while the continuing weakening of the USDBRL to 4.3975 did nothing to help. Closing values remained lower, May’20 settling at 14.94 to suggest that we may see some further consolidation for the near term.
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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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