Sugar #11 May’22
A mixed opening suggested we may see a continuation of the same band trading which has prevailed through the week so far however it was not long before specs appeared to push prices upward and test yesterday’s 19.37 mark. This level was broken quickly, and prices moved into the 19.40’s before stalling once the day traders eased up with their buying. There was very little direction being provided by the macro, which was showing a mixed view, gains for metals being offset by a slightly lower energy sector, making our own performance more unlikely with specs having looked towards crude for guidance in recent weeks. Mid-session saw a fresh wave of buying extend May’22 prices to 19.50, possibly motivated by another strong showing from the BRL which moved to 4.765 during early trading against the USD and further reduced the possibility of pricing from the Brazilian growers. That in itself was not enough to sustain the higher levels though and a sharp correction occurred on long liquidation to leave values back near to unchanged. Volumes continue to be very light and the final couple of hours saw these fade away even farther as the market settled into a tight trading band. The wait for the close was tedious ad though there was some activity on the call it simply resulted in a marginally lower settlement value of 19.26 to leave the picture unchanged as we head into Friday.
