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MORNING SUGAR REPORT

Tuesday May 19, 2020

WORLD SUGAR #11

World sugar futures have sat right around unchanged for the majority of the morning in modest volume. July is last unchanged at 10.81, while October is last one lower at 10.89. More than 30,000 lots have traded between July and October to this point. On spread, the July/October has traded from 11 under to eight under and last at nine points discount. The October/March has traded from 71 to 69 under and last at 71 points discount.
SUGAR #11 OPEN INTEREST:
 N0: 327,810 -6,191  V0: 239,213 -112  H1: 161,152 +1,994

TOTAL: 972,090 -2,129
JSG Spec Live Call: -10,500 short
SUGAR #11 OPTION WATCH

ATM VOLS: n 10.75 straddle 84-88 vol 36.55 -.85% q 11.00 straddle 114-118 vol 33.35 -.20% v 11.00 straddle 160-163 vol 32.45 -.20% h 11.50 straddle 226-235 vol 29.12 -.30% TRADES OF NOTE: PAPER BUYS CALL ON 500 N 11.25/9.75 FEN VS 10.80 TRADE 17
LONDON #5
In London, August is last $0.10 higher at $363.70 trading from $364.80 to $361.50 to this point. On spread the August/October is last $0.80 higher at $24.10 premium. The August/July white premium is last at $126.50, down $3.00 on the day.

MACRO BYTE
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will appear by videoconference before the Senate Banking Committee on Tuesday to testify how they are handling $500.0 billion in emergency lending programs. Congress made those funds available to the Treasury through the $2.0 trillion economic-relief package that President Trump signed into law in March.
Brazil is now the world’s fastestgrowing coronavirus hotspot, accounting for 13.0% of all new cases globally in the past week. The nation claimed the number three spot from the U.K., reporting 254,220 confirmed cases as of Monday.

















GLOBAL FUNDAMENTALS
Cash-wise: The JOB Economia Index for sugar in 50kg bags in Sao Paulo is up 3.5% on the week at $215.00 per tonne (9.71), through May 15th. The price equivalent for hydrous ethanol with raw exports FOB is 7.65, which is up 3.7% on the week. Anhydrous ethanol prices are valued around 7.90, up 0.4% on the week. In the April 1 – May 15, 2020 period, hydrous ethanol prices, as seen in chart below, were between 21-23% lower than in same period a year ago. Sugar, due to the weakened Brazil currency, is between 7-13% higher.


Sugar exports from Brazil have totaled 1.57 million tonnes thus far in May, an amount that already exceeds total shipments from May 2019, according to Secex.

The EU should produce 17.357 million metric tonnes of sugar (including ethanol equivalent) in 2019/20, according to the latest European Commission estimate, almost unchanged from the previous estimate. The bloc exported 37,000 metric tonnes in April, down from 39,000 metric tonnes in March, according to data analyzed by Agranet.

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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