Sugar #11 May’22
The day began with mildly lower values as prices continue to sit within the current broad range. Macro values were mixed though the often-focal energy sector was trading back downward, however this did not seem to be exerting any real influence today other than to discourage specs for adding to the net long position. The situation was unchanged through a slow morning and there was little movement during the early afternoon as we looked set for a very quiet session. Some light spec interest did emerge to pull nearby values into a small net green, however with the energy sector struggling and no fundamental reason to rally the move petered out and prices slipped back on position squaring. The specs were determined, and a second effort was made though this only saw the earlier highs matched before liquidation again set in. As boring as the pattern was the longs seemed determined to maintain positivity into the close, their efforts ensuring a May’22 settlement which was a couple of points firmer at 19.49 and spread gains as May/Jul’22 settled at 0.17 points. The market retains the ability to look higher should the macro/geopolitical situation allow, though with producer scales overhead progress will prove tricky unless the larger specs come onboard.
