• An unchanged opening set the tone for a much calmer day. Morning activity saw values work into positive ground however specs were not nearly so active as recent days with the moderate selling on show sufficient to limit the front month gains to 14.86 (+0.15). A correction back to unchanged followed as Americas based traders began their day with the afternoon then spent within close proximity of last night’s closing values. Spreads too were quieter than recent efforts with March/May falling back from a morning high of 0.27 to 0.21, while May/Jul was trading lower at 0.10 points late in the afternoon. Such consolidation is no bad thing for the market as it looks to establish itself around these levels following the recent gains ahead of a potential fresh look to the recent highs. The final 30 minutes saw a brief push down to a session low 14.59 however we quickly recovered against protective buying to end the day marginally up at 14.73. The index fund roll will commence fully on Friday with some smaller indices commencing tomorrow.

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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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