MORNING SUGAR REPORT

Friday February 14, 2020

WORLD SUGAR #11

World sugar futures have carved out a large range this morning but find themselves around unchanged at this time.March is last three points lower at 15.13, trading from 15.37 to 15.04 to this point. May has traded from 14.90 down to 14.66 and is last five lower at 14.33. More than 70,000 lots have traded between March and May to this point. On spread, the March/May has traded from 53 over to 35 over and last at 41 points premium. The May/July has traded from 18 over to 12 over and last at 12 over.
SUGAR #11 OPEN INTEREST:
 H0: 182,203 -42,968 (138,298 last yr.)  K0: 429,674 +31,920  N0: 260,704 +6,581  V0: 190,495 +3,327

TOTAL: 1,260,387 +6,951
 RECORD OPEN INTEREST  OI Last Year: 927,409 (+16.1 million tonnes lower)  JSG Spec Live Call: +190,500 long  Prices last year: 12.90
SUGAR #11 OPTION WATCH

ATM VOLS: h 15.25 straddle 33-36 vol 32.30 j 14.75 straddle 85-87 vol 25.35 -.75% k 14.75 straddle 118-120 vol 24.82 -.20% n 14.75 straddle 147-151 vol 22.06 -.10% v 14.75 straddle 179-182 vol 20.10 unch Trades of note: 500 h 15.50/15.25 fen trades 24 1,500 j 14.75 puts trade 43-47 700 k 15.00 calls vs 14.82 trades 53
MACRO BYTE
Huawei Technologies and two of its US subsidiaries were charged with racketeering conspiracy and conspiracy to steal trade secrets in a federal indictment unsealed Thursday. The new charges amp up pressure on Huawei from the U.S., where Trump administration officials are fighting to persuade allies to lock the telecommunications giant out of their next generation mobile networks because of national security concerns.
U.S. factory output fell in January on the production halt for Boeing Co’s 737 Max, showing how the grounding of the troubled plane will weigh on manufacturing and the broader economy in coming months. Manufacturing output declined 0.10% from the prior month after a downwardly revised 0.10% gain in December. Total industrial production fell 0.30%.















500 v 19.00p vs 14.65 w 100d trades 442-447
LONDON #5

In London, March, which expires today, is last $15.90 lower at $410.00 trading from $428.90 to $410.00 to this point. On spread the March/May is last $12.70 lower at $5.00 discount. The March/March white premium is last at $75.00, down $12.00 on the day.
GLOBAL FUNDAMENTALS
Cash-wise: Today’s CFTC Commitment of Traders report incorporates a period where March traded from 14.54 up to 15.46 during the reporting week. We believe that the supplemental spec long position through Tuesday has gone from a 129,984-lot long to a long position of around 165,250 lots, which would represent the largest spec long since March 2017 when prices were around 18.00. March open interest has gone from 363,878 to 281,325. May open interest has gone from 293,260 to 368,748. Total open interest has gone from 1,204,292 to 1,251,740.

France's beet output is expected to drop by 5.4% on year in 2019/20 to 37.75 million mt but up from 37.32 million mt estimated in December, according to the French agriculture ministry. Looking forward, Tereos expects to receive as much beet in 2020/21 as in the past season, having renewed 99.5% of the expired sugar contracts. However, the group sees a 2% drop in area at the country level. The Confederation of Beet Growers (CGB) blamed the lower planting on the closure of factories. S&P Global Platts pegged 2020/21 EU output at 17.778 milion mt, up 1.2% as higher yields should help offset a 1.4% drop in planted area.


GLOBAL CURRENCY UPDATE  USD: 99.011 -0.14%  BRL: 4.3062 +1.10%  INR: 71.282 +0.02%  MXN: 18.665 -0.10%


Best Regards,

Jeff Dobrydney Senior Vice President Head of Futures & Options JSG Commodities This email address is being protected from spambots. You need JavaScript enabled to view it. 203.853.3000 www.jsgcom.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.