A positive opening saw May’22 climb as high as 19.38 in reaction to the firmer macro, with yesterday’s losses being partially recouped as the world absorbed the positive headlines regarding the Ukraine/Russia peace talks with increasing cynicism. With the initial bluster over, the market eased back a little over the course of the morning on low volumes as many specs stood aside, though at no stage did prices fall back to unchanged instead sitting comfortably in the 19.20’s. The picture was unchanged into the early afternoon however the arrival of the wider spec community then drew in some fresh buying to the front of the board, the macro providing them the encouragement that the dip was spurious and so longs were reinstated. The price rose steadily to reach 19.50 before stalling as scale up pricing from producers kicked back in, though specs were reluctant to let go and held values within a few ticks of the highs. Despite the flat price rally there was only muted interest for the spreads today, reflected in the tight range for May/Jul’22 between 0.09pts and 0.14 pts. The persistence of the specs took us to an eventual daily high at 19.59 before pulling back a touch over the final two hours as a few of the longs looked to lock in some profit. Settlement was made at 19.47 as the wider macro eased away from daily highs, and one feels that other markets remain key to further upward movements while fundamentals continue to suggest otherwise.
