A marginally higher opening for Jul’22 provided some respite to the market following last night’s weaker close, however buying was limited and by the middle of the morning we were edging back down to unchanged levels. The macro world was performing strongly this morning (partly as recovery following some late weakness yesterday) however Sugar has largely disregarded the wider sector in recent trading and this appeared to be the case again today as prices simply edged along sideways. All remained calm into the afternoon until the lure of further support testing drew out fresh selling in an attempt to break the market down and search for sell stops from remaining spec longs. The market duly creaked with some size sold to push through 18.51 and match the 2-month low at 18.44, but though it looked for a moment that the market may tumble with only limited volume remaining on the 18.44 bid the market held firm as defensive buyers stepped in. Restoring Ju’22 to the 18.50’s some upward momentum quickly developed against short covering and in quick time the board reached to new daily highs with long holders buoyed by the additional support of a short-term double bottom. The rally could not sustain however and despite continuing macro strength the market faded back down through the range during the final couple of hours to leave Jul’22 settling just a single point higher at 18.55.
