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MORNING SUGAR REPORT

Monday May 18, 2020

WORLD SUGAR #11

World sugar futures have rallied agressively this morning, led by another strong session for Crude Oil and now the Brazilian Real. July is last 32 higher at 10.70, while October is last 30 higher at 10.79. More than 50,000 lots have traded between July and October to this point. On spread, the July/October has traded from 12 under to nine under and last at nine points discount. The October/March has traded from 71 to 68 under and last at 70 points discount.
SUGAR #11 OPEN INTEREST:
 N0: 334,001 -3,769  V0: 239,325 +2,109  H1: 159,158 +2,019

TOTAL: 974,219 +2,726
JSG Spec Live Call: -12,500 short
SUGAR #11 OPTION WATCH

ATM VOLS: n 10.75 straddle 885-87 vol 35.67 +.65% q 10.75 straddle 112-115 vol 32.85 unch v 10.75 straddle 158-161 vol 32.25 +.45% h 11.50 straddle 227-234 vol 29.10 unch TRADES OF NOTE: 1,250 V 12.00 C VS 10.75 TRADES 38 (PAPER BUYS) 1,591 V 11.00/12.50 CS VS 10.76 TRADES 41(PAPER BUYS)
LONDON #5

In London, August is last $4.90 higher at $364.10 trading from $360.40 to $365.50 to this point. On spread the August/October
MACRO BYTE
China pledged to make its coronavirus vaccine a global public good once one is available, with President Xi Jinping seeking to defuse criticism of its response to a pandemic that has killed more than 315,000 people around the world.
Brazil economists cut their interest rate estimate for this year while forecasting a deeper contraction in activity amid the rapid spread of coronavirus and a simmering political crisis. Analysts reduced their 2020 year-end estimate for the Selic to 2.25% from 2.50% last week, according to a central bank survey published Monday. They also see gross domestic product contracting 5.12%, compared to the previous estimate of a 4.11% drop.











is last $3.40 higher at $25.00 premium. The August/July white premium is last at $130.00, up $9.00 on the day.

GLOBAL FUNDAMENTALS
Cash-wise: The CFTC Commitment of Traders Report showed a net spec short, exclusive of the index position, of 36,870 lots as of Tuesday’s close – in line with expectations.

Indian sugar production has totaled 26.47 million tonnes through May 15th, compared to 32.62 million tonnes in the same period a year ago. A total of 63 mills were crushing cane, compared to 38 mills last year. Also, 4.2 million tonnes of sugar have been contracted for export, with 3.6 million tonnes shipped to date.

Mexican exports in the week ended May 10th totaled 44,619 – 40,683 tonnes shipped to the US under the Agreements and 3,935 tonnes shipped under Mexico’s IMMEX program. Exports of actual refined sugar increased by 4,258 tonnes on the week to 84,798 tonnes. Of the 773,086 tonnes of sugar shipped this fiscal year under the Agreements, 23.3 % (180,061 tonnes) have pol’ed at or above 99.2 degrees.


GLOBAL CURRENCY UPDATE  USD: 99.983 -0.42%  BRL: 5.7321 +2.20%  INR: 75.912 -0.44%  MXN: 23.942 +0.51%



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.

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