The craziness that can blight markets was never more than in the May’20 WTI crude yesterday which ended at -$37 to emphasise the storage concerns prevailing in their world of oversupply. Inevitably the already known impact that this is having upon Ethanol production returned to the fore and it was the negative sentiment that caused Jul’20 to gap lower this morning on route to a new contract low mark of 9.77. Spot May’20 was lower still at 9.55 before both found some support from consumers and short covering to move back to mid-range. The holiday in Brazil meant that there could be no more weakness for the currency for a day at least, though given the ongoing global situation it feels that we will see new lows for their currency in the coming days. Nearby London whites were under pressure for a second successive day as Aug/Jul’20 WP headed in to $101 following recent strength to provide another sign that the market has limited upside at present. We remained away from the lows to end mid-range though showing notable losses.
No.11 Futures
