Written Commentary
ADM Appoints Monish Patolawala as EVP and CFO
July 10, 2024
Good morning,
The market quietened considerably yesterday and remained within a 36 point range either side of unchanged for the whole session. The market had opened unchanged and this set the tone for the rest of the day. Prices, initially, dropped towards 19.50 where support was seen. During the afternoon prices did improve up to the highs of the day but soon reversed as day traders liquidated and prices dropped momentarily through 19.50 to post the lows of the day before improving into the close with spot month ending slightly lower on the day. The HK slipped 6 points to end at +125 some 20 points off the highs of the previous session while the KN dropped 3 points to finish at +68. In London, the HK dropped $3 to +15.30 while the KQ was $1 weaker at +17.40. This meant the WP also weakened with the HH WP ending at 107.40 and the KK WP at 118.70. It was a day of consolidation as traders seemed wary of the next price move after hitting 19 and 20 cents within 3 trading sessions.
US government weather forecasters reported in their monthly bulletin that they see a transition from La Nina to El Nino-Southern Oscillation neutral conditions during February to April this year. An ENSO neutral conditions means that during the period neither La Nina or El Nino is present which often means a transition of the weather from one to the other. It is thought the neutral situation will prevail into March-May. This could mean global weather could be benign for the majority of the Northern Hemisphere’s crop growing season.
This morning the market opened 4 points higher but soon slipped lower in thin volume. The market is currently 5 points weaker. The HK is 1 point firmer at +126 while the KN is 2 points firmer at +70. In early London trading, the HK is firmer at +16.30 while the KQ is unchanged valued at +17.50. The macro is mixed this morning with crude around unchanged while grains/soya slightly firmer after the release of the latest USDA report yesterday. The USD Index is a tad lower after the big drop yesterday and is, currently, at its lowest level since early June. The weakness of the USD will be seen supportive for sugar as is the still firm spot month premium. Nevertheless, the uncertainty for the flat price direction may prevail today especially as NY is closed Monday. Therefore, the market might remain within a narrow range either side of 19.60 for today.
Please note NY Sugar will be closed on Monday for the Martin Luther King holiday. London will, therefore, close an hour earlier at 17:00 (London time)
Contact the ADMISI Sugar Desk team:
Phone: +44(0) 20 7716 8598
Email: admisi.sugar@admisi.com
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2022 ADM Investor Services International Limited.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2024 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
