Wednesday, March 25, 2020

World sugar futures have rallied again this morning in good volume. May is last 18 higher at 11.45, trading from 11.36 up to 11.68 to this point. July has traded from 11.21 to 11.50 to this point and last 16 higher at 11.27. More than 45,000 lots have traded between May and July to this point. On spread, the May/July has traded from 15 to 19 over and last at 18 over. The July/October has traded from 14 to nine under and last at nine point’s discount.
Macro Byte
The Trump administration struck a deal with Senate Democrats and Republicans on a historic rescue package that tees up more than $2.0 trillion in spending and tax breaks to bolster the U.S. economy and fund a nationwide effort to stem the coronavirus. The legislation, which congressional officials were set to continue to write throughout Wednesday will provide direct financial checks to many Americans, drastically expand unemployment insurance, offer hundreds in billions in loans to both small and large businesses, and provide health care providers with additional resources.

India implemented a nationwide stay-at-home order and joined the growing number of countries clamping down on travel and tightening restrictions on their citizens to slow the coronavirus pandemic. The order affects 1.30 billion people, closes all private businesses and government offices deemed nonessential.

Brazil posted the slowest mid-month inflation in over a year amid a plunge in transportation costs, giving the central bank more breathing room as it cuts the benchmark interest rate to counter the coronavirus pandemic. The IPCA-15 index rose 0.02% in mid-March from the month prior.

Option Watch: k 11.50 straddle 90-96 vol 41.50 -.25% m 11.50 straddle 121-126 vol 35.58 -.40% n 11.50 straddle 145-150 vol 33.93 -.55% v 11.50 straddle 186-195 vol 29.95 -.30%

Trades of note: 500 k 9.50p trade 5 500 n 9.50/12.50 2x1 fence trades flat/1 250 n 11.00/10.75 ps vs 11.37 trades 10

Brazil’s oil company Petrobras made another massive cut in gasoline prices on Tuesday, this time 15% at the refineries. The previous cuts over the last two weeks were 9.5% and 12% respectively.

China imported 320,000 metric tonnes of sugar in the Jan-Feb period, up 119% on year, according to customs data. Imports from Brazil in the May-June period could reach a record high because the current import margins are very profitable. The supply from Pakistan and Thailand, including smuggling, would be much lower because of the lower crop in both countries. Combined with consumption returning to normal, refineries may be looking at stocking for up to two years ahead.

Indonesia is expected to issue permits for 550,000 tonnes of raw sugar imports to augment domestic supply ahead of peak demand season, according to an official at the trade ministry.

Mexican sugar exports through March 15th have totaled 509,370 tonnes. Exports have been comprised of 351,250 tonnes to the US under the Agreements (268,627 tonnes under of “other sugars”, 82,623 tonnes of refined); 4,005 tonnes to the US under the re-export program; 29,913 tonnes to non-US destinations and 124,202 tonnes under Mexico’s IMMEX program. For those keeping track, the Mexican peso recovered to 24.8149 today.



Regards, Jeff Dobrydney JSG Commodities This email address is being protected from spambots. You need JavaScript enabled to view it.



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