• There continued to be positivity in the market this morning, once more edging higher as long holders focussed their attention upon 15c. A steady session was then ignited at lunchtime as US based specs arrived to run buy stops in the 14.80’s as a sharp rally took the front month to yet another new high mark of 14.90, however from here with 15c looming right into view things took a more unexpected turn. A pause against some light profit taking turned into a more significant correction with sell stops now being elected as March’20 slid to 14.50 barely an hour after the new recent high had been achieved. Whether this was attributable to weakness elsewhere in the commodity sector, or merely an illustration that the market lack buying at these levels when the funds/algo’s back away is debatable, but either way it removed the earlier heat to leave prices in debit for the remainder of the session. That’s we did not slide further showed that there is certainly some resilience from the new longs in their desire to provide support, however the lower settlement across the board showed the first glimpse of vulnerability in quite a while.

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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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