• The funds clearly have the bit between their teeth right now, with the market making a steady start to continue on above yesterday’s highs against solid morning volume. All of this was far overshadowed by the London whites, where the March’20 contract was flying due to a 3 pronged influx of outright, spread and premium buying. The March white premium flew out to around $82.50 (from $71.50 overnight) while March/May reached $6.90 having started the day at a discount. Fair to say that these sweeping gains proved unsustainable as sellers emerged to take advantage, but not until we had seen the spot month record a print at the psychological $400 target. Throughout this upward charge in the whites No.11 lagged some way behind, though the funds were never far away and during the course of the afternoon we renewed the upward path in a more meaningful way to push through continuing producer pricing record a high of 14.53. The final hour then proved rather dramatic as we first slipped from these highs to 14.13 on selling and sell stops from faster moving specs, before pulling back up on defensive buying to settle 16 points up at 14.32. This provided a positive close once again but also showed the first glimpse of some fragility with buyers few and far between when the sell stops were triggered. Volume was considerable once again, in the region of 350,000 lots.
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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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