Sugar #11 May’22
There was some light support for the market this morning which reversed some of the late damage inflicted yesterday and held May’22 back above 19.00, however the specs were only showing in a limited way and so prices soon settled into a sideways pattern which will have been welcomed by some as they take stock following recent movements. There was little else to report as the market edged along quietly during the rest of the morning, however things enlivened considerable during the early afternoon as news broke that Petrobras is to raise both Gasoline and Diesel prices effective tomorrow. May’22 reacted with an immediate surge to 19.59 on concerns over the impact on sugar/ethanol balance, remaining near to this level for a while before calming back into the range. With the news digested the situation remained calm for the rest of the afternoon, though values comfortably remained above the morning levels with consolidation either side of 19.20. Spreads had recovered some ground on the spike upward but by late afternoon had returned to type with May/Jul’22 showing a weaker bias as it returned to 0.02 points. Prices retreated a few points further during the closing stages, leaving May’22 to settle at 19.10 to conclude an eventful day showing only moderate gains.
