Jenkins Sugar Group Morning Report

Friday, July 30, 2010

 

Flowchart: Process: JSG Macro Byte  A senior credit analyst at Moody’s has gone on the record to state that Spain’s “Aaa” credit rating will fall as many as two grades in the coming weeks.  This follows both S&P and Fitch downgrading the country’s credit ratings several months ago.  Inflation in the Eurozone increased 0.3 percentage points year-over-year to 1.7% due to rising energy costs.    U.S. GDP was expected to increased 2.6% from April to June, while overall unemployment was expected to show an additional 125,000 job losses following census-worker reductions World sugar futures have given back a bit of this week’s gains in very light volume, with the dollar slightly recovered from a down week.  October is now 16 points down at 19.34 having established a range of 19.59 to 19.26.  March has traded from 18.65 down to 18.45 and last unchanged at 18.49.  Approximately 5,000 contracts have traded between the October and March to this point.  On spread, the October/March has come under pressure after yesterday’s major rally; the spread has fallen from 97 to 83 points premium and last at 85 over.  The March/May has traded from 86 to 92 points premium and last at 91 over.

As we mentioned last night, the number of vessels waiting to load vessels at Brazilian ports now stands at 123, up from 113 vessels a week ago.  At the Port of Santos alone, there were 86 vessels waiting to load, compared to 79 vessels last week.

According to the country’s weather office, India’s total rainfall for July stood at 101% of the long term average.  The office reported that the monsoon in August-September should be 107% of the long term average.

The Philippines is likely to award import rights for the full 100,000 tonnes of sugar the country was seeking at today’s auction after traders have submitted bids totaling nearly 130,000 tonnes, according to a government official.  The sugar was aimed at building the country’s buffer stock, with local output delayed due to the drought caused by El Nino.  We will update news on this auction in tonight’s Evening Report.

In Pakistan, the Economic Coordination Committee of the cabinet failed to approve the Ministerial Committee’s decision to import 500,000 tonnes of duty-free raw sugar before November 30th, according to the Daily Times of Pakistan.  The Ministerial Committee claims sugar stocks stand at 1.17 million tonnes, sufficient for three months.

 

 

 

Best Regards,

 

Jeff Dobrydney

Jenkins Sugar Group

203.563.6100

www.jenkinssugar.com

 

This report has been compiled for general informational purposes only.  While every effort has been made to ensure accuracy, Jenkins Sugar Group, Inc. assumes no responsibility for errors and omissions.

 

Contact Information

JSG Commodities

(203) 853 3000

16 South Main Street
Suite 202,
Norwalk, CT 06854

Frank Jenkins
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Ken Lorenze
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Jeff Dobrydney
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Eric Bergman
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Stephen Ward
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Chris Cody
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Diana Nguyen
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