March’23 commenced its tenure at the top of the board with a solid morning showing, initial gains quickly being re-gathered after some profit taking kicked in to leave the market comfortably holding the 17.80 area through to mid-session. This movement tied in alongside a broadly positive macro picture, however once the Americas day got underway a few cracks started to appear and again expose the fragility of moves driven by the smaller specs. The slide to morning lows was orderly however there was then a vacuum beneath as the continuing liquidation quickly led March’23 down to the upper 17.40’s. Support was then uncovered through the start of some end user scale pricing, to be expected in the context of several weeks of rangebound trading, and this led prices to hold the same are for a couple of hours. Spreads were understandably weaker given the pressure on nearby prompts, leading to an interesting board which showed nearby losses of 0.27 points and back month gains of 0.17 points during the final hour. Pre close short covering left March’23 settling at 17.42, with further support testing likely to be seen tomorrow though no hint yet that we are ready to break from this range. As reported on Friday a total of 14,652 lots (744,458t) were tendered against the Oct’22 contract. Deliverers were Czarnikow (ADM), Viterra (SG) Cofco (MCQ) and Dreyfus (Term). Receivers are Alvean (MCQ), Wilmar (SG) and Sucden (ADM).
Opening buying sent Dec’22 up to $532.00, however a wild opening period saw the price quickly slump back down to be trading at $524.60 just 40 minutes later. The volatility was not yet over as a spike back to $530 followed however in truth these movements were merely representative of the thin environment as testified by the low volumes being accrued. By late morning, the situation had calmed considerably although with apathy having set back in this impacted white premium values with a lack of desire to match the moderate gains made for No.11 and so leaving March/March’23 to trade back beneath $100.00. The premium picked back up to $103.00 during the afternoon though this too was attributable to the No.11 as it weakened more sharply than our own sleepy market, and while Dec’22 did slide to be trading $523.00 late in the afternoon it was still a safe distance away from recent lows and any level liable to lead to spec long liquidation. Short covering took place late on to leave Dec’22 closing at $524.20, and while not the greatest way to start the month it changes little while we continue within recent parameters.
