MORNING SUGAR REPORT

Wednesday May 20, 2020

WORLD SUGAR #11

World sugar futures have rallied to new highs for the move and the highest nearby sugar has traded in more than two months. July is last 39 higher at 11.25, while October is last 32 higher at 11.22. More than 100,000 lots have traded between July and October to this point. On spread, the July/October has traded from three under to six over and last at three points premium. The October/March has traded from 72 to 62 under and last at 63 points discount.
SUGAR #11 OPEN INTEREST:
 N0: 323,589 -4,221  V0: 236,310 -2,903  H1: 162,173 +1,021

TOTAL: 970,769 -2,129
JSG Spec Live Call: +10,500 LONG
SUGAR #11 OPTION WATCH

ATM VOLS: n 11.00 straddle 83-86 vol 36.35 -.50% q 11.00 straddle 112-116 vol 33.20 unch v 11.00 straddle 159-163 vol 32.38 -.20% h 11.50 straddle 227-235 vol 29.07 -.30% TRADES OF NOTE: 500 V/N 12.00 CALL CALENDAR TRADES 33
LONDON #5
In London, August is last $3.60 higher at $368.30 trading from $363.80 to $368.80 to this point. On spread the August/October is last $0.80 higher at $22.60 premium. The August/July white premium is last at $120.50, down $3.00 on the day.

MACRO BYTE
Brazil reported a record day of infections, making it the world’s fastest-growing coronavirus hot spot, and President Donald Trump is considering a ban on Brazilians traveling to the U.S. As of now, the country has no health minister after two officials who occupied the top post left following clashes with President Jair Bolsonaro, who has dismissed efforts to slow the disease’s spread.
China is considering targeting more Australian exports including wine and dairy, according to people familiar with the matter, in what would be a dramatic deterioration in ties as the key trading partners spar over the coronavirus outbreak. Chinese officials have drawn up a list of potential goods that could be subject to stricter quality checks, anti-dumping probes, tariffs or customs delays.















GLOBAL FUNDAMENTALS
Cash-wise: The EU imported 25% more sugar on year as of mid-April, while exports were 56% lower, according to European Commission (EC) data. There is a concern that sugar imports under the WTO CXL erga omnes TRQ will weigh on domestic prices, according to an analysis in Agrodigital, which urged the EC to implement some duty protection.

Mexico is on track to consume 4.28 million mt of sugar this season, up 5% from last season, according to Zafranet. Monthly demand averaged 380,000mt since October, up from 350,000mt last year. About nine out of 18 mills in Veracruz have finished for the season, earlier than usual because of low yields, according to the cane growers' association CNPR. The harvest ended in southern Quintana Roo with 900,000mt of cane crushed, compared to a target of 1.02 million mt due to the drought, a farmer representative said.

Domestically, Michigan Gov. Gretchen Whitmer issued an emergency declaration after the Edenville Dam and Sanford dams failed in Midland County, forcing thousands of residents to immediately evacuate their homes on Tuesday. Downtown Midland could be under 9 feet of water by Wednesday morning, Gov. Whitmer said during a press conference on Tuesday night following the two collapses. A flash flood emergency is in effect for the areas downstream, which includes Midland City and Freeland, Michigan.The Edenville Dam is located about 30 miles inland from the Saginaw Bay of Lake Huron. Over 80,000 people live in Midland County. Lets take a look below at impacted Sugarbeet area:




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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