• A calmer day saw volume at less than half of some recent efforts as prices consolidated the gains of the past week or so with a technical inside day. Much of the session was spent within a few points of last night’s settlement values, the early March’20 low of 14.34 was never threatened again while it took until the final hour to touch the session high of 14.50 and this levels was also quickly rejected. Specs were far quieter than recent days, but with the market remaining near to recent highs it may simply be that we are allowing some of the technical indicators to catch up and unwind the overbought element within the market as the specs undeniably have the capacity to continue buying should they wish. Tonight’s COT report is more eagerly anticipated than has been the case for a while, and having started the move higher on Thursday of last week it will be interesting to discover just how many longs were added within the huge volumes traded between Friday and Tuesday. While by no means critical to the market given the extensive capacity of the funds it may certainly have a bearing upon any decisions made by the trade when we resume on Tuesday following next Monday’s No.11 market holiday.

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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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