• Initial losses were short-lived as March’20 pulled itself up from an early low of 14.42 to be trading back into positive territory by late morning. This positivity placed sugar at odds with a disappointing macro picture once again, the repeated occurrences of this showing the impressive pull of the fundamental strength given the wider ongoing concerns of the coronavirus seen elsewhere. The strength was nothing in comparison to that being seen in the whites were once more the premiums were being squeezed out – March/March’20 reaching $91 and May/May’20 at $88. Following aa period spent back in the 14.50’s the market was boosted on BRL strength as confirmation of the anticipated roll by the BCB of their currency swaps moved the USDBRL back towards 4.23. This encouraged spec buyers to the fore and in a two pronged move they sent the spot month to 14.82 before lining up a push beyond the recent 14.90 high that ended by reaching the psychological target of 15c with the high a single point above at 15.01. Long liquidation from day traders and algo’s soon followed as the buying dried back up and we worked all the way back to 14.62, however the longs are keen to push on and the final couple of hours saw an immediate resumption of the upward momentum. This ensured a strong close at 14.89, reinforcing technical strength and showing a desire from the specs to push higher still in 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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