• Today proved to be generally calmer both in terms of traded volumes and also market movement, as March’20 traded inside yesterday’s range throughout the morning. An initial dip to 14.22 proved to be short-lived as prices consolidated a small way above last night’s closing values. Having pushed the upper limits of the technical picture for the past 3 sessions it came as no great surprise to see the specs ease back on their buying for fear of further overreaching to the upside in the near term, however they were never too far away and stepped in with some moderate interest to defend the price and ensure that we remained positive during the afternoon. The 14.50 area provided the first significant resistance ahead of yesterday’s 14.53 high and although this was challenged during the final hour the inside day remained in place until the closing call when more aggressive spec buying forced through to 14.57 ensuring yet another strong technical performance with settlements just shy of the highs.
  • The rollercoaster action for March’20 whites continued today as sellers emerged to push the WP back beneath $70 this afternoon having commenced above $75, while March/May returned to a -$2 discount. The lower levels merely served to bring buying back to the spot month and by the close HH20 had widened all the way back to $74.

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Jon Whybrow

Jon joined CZ in 1991, working in the Treasury department before moving to join the derivatives team in 1994. Over 30 years Jon has built up significant experience across derivatives markets and products, particularly sugar, and is now Head of Flow derivatives providing market execution services for CZ’s global client base. He is responsible for the market commentaries which are published each day on CZ app.

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