Jenkins Sugar Group Evening Report            ­­­­­­­                                     

Thursday January 26, 2012

World sugar futures turned in an inside day today with the March working gradually higher through the overnight period and then failing at 24.97 on two distinct tests of Wednesday’s 24.98 high. Prices held at unchanged at the day’s lows – the day’s consolidation left prices 22 higher in March at 24.73 and from 18 to two higher in the back months. Volume was 86,869 lots, including a further 18,781 lots of March-based spreads. On spread, the March/May traded from 63 to 54 and last at 56 over. The May/July traded from 60 to 46 and last at 47 over. Technically, the 10-day average is 24.36. The 20-day average is 23.96 and 24.02 represents a 50 % retracement of the recent rally.

It was a quiet day news-wise. According to Williams S.A, the weekly Brazilian vessel line-up totals 822,331 tonnes, eight percent lower than last week’s line-up of 894,814 tonnes. This week’s lineup includes 101,080 tonnes of white sugar. Last year at this time, the weekly line-up totaled 770,696 tonnes. New nominations in this week’s lineup include 21,589 tonnes destined to Portugal, 22,000 tonnes to the Black Sea, 13,300 tonnes to Tunisia, 44,000 tonnes destined to Nigeria, 37,500 tonnes to Egypt and 19,000 tonnesdestined to Algeria. Russia has produced 4.943 million metric tonnes to January 21st from beet harvested this year, compared with 2.729 million tonnes on the same date last year.

In the NAFTA region: US futures prices settled 11 higher in March at 34.25 and from eight to 37 lower in the other traded months. The March volume was evenly distributed from 34.50 to 34.25 – March also traded lightly on spread at 60 and 50 under May. March open interest shed only 11 lots on Wednesday’s AA’s and light trading. OI stood at 2,066 lots as of this morning. There were a further 634 lots of EFP’s posted today. The ICE lowered initial and maintenance margins on Sugar #16 by $1,050 to $1,850 per lot. Spec original margin was slashed from $4,050 to $2,590 per contract – a huge relief for the #16 spec community.

Regards,

Jenkins Sugar Group, Inc.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Raws: “Fair value” #16 futures pre-close, or JSG estimate. US Refined: Sellers’ list price.

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.