• There was solid early buying in the market today which soon lifted the March’20 contract to 14.58, yet another new high for the move. Producer selling had emerged into the 2020 positions overnight to provide the immediate resistance, and having stalled at 14.58 for a period we eased back to sit closer to unchanged levels once again. As with Monday, we again saw some slight vulnerability as a sharp 20-point correction took place mid-session, however we are learning that such instances are merely a trigger for the specs to step in and defend their growing long holding as they swiftly pulled us back to the 14.50 area. A push back into the 14.50`s followed during the afternoon but on lower volumes the market lacked the dynamism to push beyond the earlier highs and we instead fell back into negative territory late on. A few sell stops were triggered along the way with some additional long liquidation seen around the close to end lower for a change at 14.43.
  • The pendulum swung the other way for March’20 whites today, renewing Monday’s upward path following yesterday’s sharp correction. This took March/March back out beyond $80, pulling the May/May towards $78 in the process, while spread values were also considerably firmer, reaching $5.80 for March/May and $2.50 for May/August.

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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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