• A second consecutive day of consolidation saw the spot March’20 contract again trading within a similar range, though technicians will note the lower high and lower low showing signs of weakening from a fresh tilt higher in the very near term. From a slightly firmer opening we had swiftly fallen down below 14.60 this morning, and with spec activity rather limited we subsequently spent equal periods at either end of the day’s range without ever looking likely to break in either direction. Spreads saw an increase in volume as the early part of the index roll got underway, March/May trading over 35,000 lots as it was sold down from 0.24 to 0.16 intra-day, though late buying for the March pulled it back to mid-range. This late buying appeared to be protective action from longs once again and ensured that the front month ended very marginally higher, emphasising the rather dull nature of the session.
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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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