Sugar #11 Jul’22
There was a distinct lack of buying on show this morning leading prices to give back some of yesterday’s gains on the opening, the decline continuing into the upper 19.50’s where Jul’22 settled down to consolidate through the rest of the morning. The macro was mixed, and though the energy sector was trading down a little the prices remained within the bounds of recent movements, possibly encouraging the support that we were finding. After several hours of slow trading the market broke to new session lows, drawing in some spec liquidation along the way as the decline extended into the 19.20’s, the lowest levels seen in almost three weeks. Alongside the flat price weakness we saw May/Jul’22 continue to be rolled forward in an orderly manner, the spread narrowing a touch to 0.04 points but unspectacular with the May’22 open interest having reduced again to 67,725 lots. Despite sitting to the bottom of the commodity charts there was no sign of any recovery as trade entities stand back against the fundamental view, and so prices meandered at the bottom of the range on reducing volume. The final hour then saw additional pressure register further session lows, leading to a weak settlement level at 19.21 for Jul’22 while the May/Jul’22 spread narrowed to settle at 0.03 points. Post close trades down to 19.17 suggest that further downward testing may well take place unless any macro strength can be found to turn the tide as without the spec buying the market seems set to continue struggling.
