Sugar #11 May’22
A firmer macro picture saw us follow suit and begin the week trading higher as spec buying sent May’22 accelerating to 19.20 during the first 30 minutes. Friday’s COT report showed a sharp reduction of 51,000 lots in the net spec long during the week to 15th March, now standing at 88,158 lots. This shows just how much recent events have been dominated by the speculative sector as markets twitch continuously against the geopolitical picture, and todays opening showed this will continue for the foreseeable future. The rest of the morning was oddly calm as the early gains were consolidated however the arrival of the larger US specs/funds drew a little more buying in to break this pattern and help the market to new daily highs as we moved into the afternoon. The movements were uniform across the first few prompts and so spread values were rather flat, the only significant changes being against the 2024 positions where the pace of increase was far more limited. Highs were recorded at 19.34 before a small dip back against day trader liquidation, though the correction was limited, and prices remained at the upper end of the range through to the close. May’22 settled at 19.28 to provide a positive conclusion though there remain technical hurdles to overcome (19.47 and the former highs through to this months 19.89 mark) if this is to prove to be more than just rangebound volatility.
