159 words / 1 minute reading time

The market made an early foray to $12.89c/lb basis March’20, falling just short of the recent high market at $12.91-12.93c/lb. Producer selling remained constant at the higher levels and with buying proving limited during the morning we eased back to hold near to unchanged levels. The USDBRL opening then saw a continuation of the BRL weakness and in early trading the currency moved to trade a new record low of $4.2692, providing assistance to Brazilian producers looking to hedge in their base currency. The resultant inflow of selling across 2020 positions sent prices lower with March’20 reaching $12.66c/lb before digging in and finding some short covering to provide support as the selling pressure eased. The final 3 hours were spent exclusively in the 12.70’s on calm volumes and despite the BRL recording a new low at $4.2770, the producers stood back allowing late short covering to bring March up slightly on the call with settlement at $12.78c/lb.

No.11 Futures

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If you have any questions please feel free to contact the derivatives team at jwhybrow@czarnikow.com.

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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