Sugar #11 Mar’22
An unchanged opening soon gave way to the latest bout of weakness as March’22 slipped down through 18c to consolidate the 17.90’s. Buying remains confined to scale interest at the present time and so further erosion followed to the mid 17.80’s where values were able to hold for the rest of the morning and prevent a challenge/breakdown of last weeks 17.77 mark. All the volume was again being seen for the March/May’22 spread as the index roll continues and while morning volumes are always lower, we were today seeing more buying in place which held the spread at 0.35 points by mid-session following an earlier slip to 0.32 points. Specs emerged to push the price back towards 18c early in the afternoon and then triggered some buy stops (short covering) to accelerate the price ahead to 18.14 before things calmed once more. This interlude did serve to bring the action back above the psychological 18c pivot which then just about held up against some fresh spec selling, leading the later afternoon to be spent within close proximity of unchanged levels for nearby prompts. Spread volume increased significantly during the final 90 minutes as index traders upped the pace of their roll, though it remained firmly within the recent range with the index activity well marched off to leave the differential at 0.36 points. The flat price meanwhile concluded quietly, March’22 continuing sideways to close at 18.08.
Sugar #5 Mar’22
The continuing pattern of disappointing performances is making it tougher for the market to find the necessary impetus to recoup lost ground and today started by following a familiar pattern as very light gains were quickly undone, leading May’22 to fall to $479.00 during the first couple of hours. The only exception to the weakness was March’22 where the flat price was being held by strengthening spread values as buying ahead of expiry pushed March/May’22 out to a high at $14.80. The spread interest was also providing support for white premiums, particularly March/March’22 which was nudging $100 during the late morning but also down the board as May/May’22 recovered some of yesterdays lost ground to trade back above $93. Consolidation either side of $480 as we moved into the afternoon showed that consumer interest remains steady around the lower levels and while outright volume remained low the pressure at least was lifted. May’22 remained calm for the rest of the session, playing the upper end of its own range increasingly to end the day at $483.00 however the real excitement was seen for the spread. March/May’22 rallied sharply against (trade?) rolling during the latter stages to end at $16.60, just 0.30c shy of its high, suggesting we may see a positive expiration at the end of the week.
