Sugar #11 Jul’22
Recent weakness has encouraged a little more physical business to take place with some hedge lifting noted through the early part of today’s session leading to modest gains. The wider macro was also tempting to stabilise and though we soon settled down into quiet trading the picture held positively with Jul’22 sitting in the mid 18.90’s. The late morning brought some additional buying interest which led Jul22 up through the early highs, bringing in a little day trader interest against the chart as they looked to fill the gap between 19.12/19.17 established yesterday. The efforts above 19c continued through into the afternoon but having failed to completely fill the gap with a series of prints at 19.14 the market eased back to a point where long liquidation took over and accelerated the price down to 18.83. Once the day traders had cleared away there was no appetite to continue the decline (larger specs were mostly standing back) and so prices settled back down to hold the 18.90’s in a repeat of the morning pattern. May’22 continues towards expiry in an orderly fashion with May/Jul’22 holding the same band between 0.05 and 0.08 points throughout, another reduction in open interest to 47,779 lots suggesting the tonnage tendered will not be breaking any records. There were no new developments during a subdued close and the day concluded with Jul’22 settling only marginally higher at 18.93 while May/Jul’22 ended at 0.06 points.
