The market jumped higher on this morning’s opening with trade and spec buying combining to take Oct’22 up to 19.00 during early trading. With a short-term double bottom now in place at 18.45 following yesterday’s efforts there was encouragement for the longs to push upward, while the macro was also proving supportive during the early part of the session. Steady buying continued throughout the morning, and this maintained Oct’22 prices either side of 19.00 however as the macro started to wane, led by large losses for crude, so too did sugar. Admittedly our situation differed in the sense that the fall merely sent values back towards overnight levels, with any efforts from smaller specs to defend along the way ending in long liquidation as they quickly threw the towel in. Despite the pullback Oct’22 remained above last nights values with a low at 18.71, its lower volumes suggesting that many traders had packed up early ahead of the 3-day weekend in the US. The final hour played out at the bottom of the days range with Jul’22 ending the week at 18.60 and Oct’22 at 18.73. This leaves the wider picture unchanged as we head into the holiday weekend with eyes now on the COT for some guidance as we look to see how much more the specs had liquidated in the last week.
