MORNING SUGAR REPORT

Friday June 26th, 2020

WORLD SUGAR #11

World sugar futures appear to be in capitulation mode this morning, with October breaching the mid-June low at 11.71 to post a new three-week low. At 9:10 a.m. in New York, July is 27 lower at 11.54, October 30 lower at 11.62 and the 2021 positions 29 to 20 lower. Volume has totaled just over 50,000 lots. On spread, July/October has traded from nine to 12 under and last at 10 under. October/March has traded 64 to 66 under and last at 65 under. There have been 3,923 July EFP’s posted ahead of Tuesday’s expiry. The London whites led the raws lower this morning – the nearby whites premium has narrowed to near $90.00 from $120 a few weeks ago. Adding to the market’s woes, the energy complex is soft this morning and the Brazilian real has eased to 5.4811 – a new low dating back one month.

Option watch: • August 11.75 straddle 52-55 - vol 25.20, -.30 % • September 11.75 straddle 86-90 - vol 24.90, -.30 % • October 11.75 straddle 107-110 - vol 24.70, -.20 % • March 12.50 straddle 170-174 - vol 21.83, -.30 % • May 12.25 straddle 175-183 - vol 20.85, -.25 %

Trades of note: 1,150 March 10.50 Puts vs 12.45 trades 19 700 March 12.75/14.75 1x2 Call Spreads vs 12.28 trade 23 and 1,000 October 11.25/March 14.00 Fences trade 1.


GLOBAL FUNDAMENTALS
India’s southwest monsoon has covered the entire country as of today, 12 days earlier than normal, according to the India Meteorological Department. The monsoon has been uneven, arriving in the country’s northeast about a week later than normal, the south and east in line with normal averages, and seven to 12 days early over the central and northwest regions.

Rabobank estimates that the global sugar market will see an 850,000 tonne surplus in 2020-21 following a deficit of 4.3 million tonnes in the current year – down from the prior estimate of 6.7 million tonnes.

MACRO BYTE

The U.S. saw a daily record of nearly 40,000 new coronavirus cases as a surge of infections continues to spread, surpassing an earlier peak in April following the initial outbreak. Several states saw record daily highs, including Alabama, Texas, Idaho, and Nevada.
Consumer spending increased 8.20% in May, a sign that the U.S. economy is growing again. Personal consumption increased at a record pace in May from a month earlier in what was the biggest onemonth gain since record keeping began in 1959.
























Mexican sugar exports through June 21st have totaled 1.120 million tonnes, including 869,406 tonnes shipped to the US under the Suspension Agreements (121,620 lots) and 216,569 tonnes shipped under Mexico’s IMMEX program. In the most recent week 9,098 tonnes shipped to the US and 5,747 tonnes shipped under the IMMEX program.






Best Regards,

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.