Sugar #11 May’22
There was a significant amount of macro activity this morning with overnight news of Russian attack on Ukraine sending commodities higher, led by the energy sector where brent crude was above $100 for the first time since 2014. Sugar’s reaction was to gap higher at 18.04 on assorted buying, with the continued push quickly taking May’22 up above 18.10 where some consolidation occurred. With no sign of calm elsewhere it was not long before another step up was made, building upon the platform to reach 18.33 against spec led activity before slowing off and retreating a small way as some selling emerged both from producer pricing and profit taking. Ahead of the Americas day things were becoming a little mixed with the energy sector remaining strong while softs and grains were showing more caution and giving back some of the earlier gains. This led prices back to opening levels and as May’22 broke beneath 18.02 so some sell stops were elected with the swift decline reaching 17.84, by no means a collapse as it served to neatly fill the overnight chart gap. Values quickly picked back up to the 18.00 area however with the earlier impetus now lost that area started to see some selling and so prices remained toward the lower end of the range moving through into the final hour. The pressure remained on during the final hour to leave May’22 settling just 3 points higher at 17.91, belying the action which had gone before. We end the day stuck within the same parameters though with tensions likely to continue boiling over Ukraine further volatility seems a good possibility.
