Sugar #11 May’22
Recent days have seen the market attempt to break higher, and though the efforts have extended the recent move through 19.80 they have lacked the necessary buying volumes to break beyond other technical points and challenge contract highs. Today started by reading a similar path as buying supported the market and this enabled May’22 to edge upward to 19.76 over the morning, though the movement felt rather laboured with no significant impetus to be seen. Some fragility was uncovered around noon as light liquidation quickly eroded the gains, and this in turn triggered a little more long liquidation with the second wave sending the price back to 19.45. With the outright movements remaining the preserve of the spec/small trader things soon settled back down with prices able to return to mid-range, something of a reflection upon the wider macro which was quietly mixed, while a lack of any new fundamental view also constrains activity at the present time. Spreads did at least see some better volume as May/Jul’22 ranged between 0.14 points and 0.20 points ahead of the index roll which commences tomorrow. There was no fresh movement during the later part of the session with May’22 concluding comfortably within the daily range at 19.59, a marginally lower close which leaves the recent picture unchanged.
