Sugar #11 Mar’22
Following on from the choppy session seen yesterday there was a return to calm with moderate initial losses picked up which left the market to consolidate comfortably either side of 18.50 as the morning progressed. The flat price was a sideshow to the phenomenal activity in the March/May’22 spread yesterday but here too things were far calmer with the panic that gripped shorts seemingly over for now and the differential moving along far more calmly between 0.45 and 0.50 points. There was no sign of the specs showing their hand as we moved through into the afternoon, and this left March’22 edging comfortably along within the range and volume slumping to regular levels once more. The expected afternoon increase in index selling volume pushed the spread back to 0.40 points with buyers now nowhere to be seen, though the influence upon the flat price which saw March traded back to 18.27 was not felt down the board with only marginal losses shown from Jul22 forward. New lows were recorded for the flat price during the closing stages as March’22 traded back to 18.22, indicating a continuing reluctance to join the wider macro strength, though the spread remained off its lows. A far calmer session concluded with March’22 at 18.30 and March/May’22 at 0.41 as we head into the final day of the index roll window almost as if yesterday never happened.
