News

Print

EVENING SUGAR REPORT 5/18/2020

Monday May 18, 2020

World sugar futures settled 42 higher in July at 10.80 and from 40 to 31 higher in the back months as the macro stars aligned. There was not much depth to the rally - outright traded volume was just 115,855 lots. WTI Crude appeared to be in good shape to avoid any of the turmoil that marked the May expiry – nearby WTI gained a further 8.1 % today, moving cleanly above $30.00, roughly $70 above the nadir seen in April. The Brazilian real rallied from Friday’s 5.8562 close to 5.6948 today. On spread, July/October traded from 12 under to nine under and last at 10 under. October/March traded from 72 to 68 under and last at 70 under.

Option watch: Option volume was 25,900 contracts consisting of 18,550 Calls and 7,350 Puts. Volatility was steady throughout the session. Paper was seen as an early buyer of both October Calls and Call Spreads laid-up. Trades of note: 1,000 July 10.00 Puts trade 14-17, 800 July 12.00/10.50 Fences vs 10.78/.79 trade 19, 420 July 11.00 Calls vs 10.61 trade 27-28, 400 July 13.00 Calls trade 3, 325 July 11.25/9.25 Fences vs 10.60 trade 14, 250 July/October 10.00 Put Spreads vs October 13.00 Calls trade 5, 1,591 October 11.00/12.50 Call Spreads vs 10.76 trade 41, 1,250 October 12.00 Calls vs 10.75 trade 38, 750 October 11.50/13.25 Call Spreads vs 10.87 trade 36, 500 October 12.00/10.00 Fences trade -4/flat, 300 October 10.75 Straddles trade 157-158 and 300 March 13.00/14.75 Call Spreads vs 11.48 trade 32. ATM vol's: July 10.75 Straddle 84-87 - vol 35.70, +.70 % August 11.00 Straddle 115-118 - vol 35.20, +.50 % October 11.00 Straddle 160-163 - vol 32.25, +.50 % March 11.50 Straddle 227-234 - vol 29.10, unchanged Option Open Interest: Calls 313,715 -22,203, Puts 279,024 -17,238, total - 592,739 -39,441 (June expiration)

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.

In the USMCA region: US futures trading was quiet today with negligible volume changing hands. Prices settled unchanged in July at 25.80 and from one higher to unchanged elsewhere. US sugar beet planting progressed well during the week ended Sunday. In Colorado, the crop was 73 % planted versus 94 % last year and 93 % on the five-year average. In Idaho, the crop was 90 % planted versus 98 % last year and 96 % on average. In Michigan the crop was 94 % planted versus 66 % last year and 90 % on the five-year average. In the East Central region of Michigan, additional sugar beet replanting was reported due to prior frost and flood damage, according to the State Ag Stat Service there. In Minnesota, the crop was 73 % complete versus 70 % last year and 92 % on average. In Montana, the crop was 85 % planted versus 81 % on average and 88 % on average
and in North Dakota, the crop was 66 % planted versus 82 % last year and 96 % on average. In Wyoming, the crop was 88 % complete versus 81 % last year and 88 % on average.

Regards,

JSG Commodities This email address is being protected from spambots. You need JavaScript enabled to view it. (203) 853 3000

JSG Indications: Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Raws: USNH: 25.75 25.85 26.15 26.50 26.75 26.85 Mexican peso v USD: 23.7566 Raws: “Fair value” #16 futures pre-close, or JSG estimate.

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.

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries