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Friday June 26, 2020

World sugar futures dropped below the past three weeks’ trading range today, settling 26 lower in July at 11.55, 30 lower in October at 11.62 and from 31 to 26 lower elsewhere. July OI stood at 23,008 lots prior to today’s activity. There were 6,611 July EFP’s posted today – 11,660 lots of July/October traded. July/October traded from 12 under to six under and last at eight under. October/March traded from 66 under to 62 under and last at 63 under. The Brazilian real eased to 5.4916 by mid-morning in New York – the real settled at 5.1544 on Tuesday and has been depreciated by over 6.5 % since. The energy complex was generally soft today – WTI Crude continued to consolidate in the core of the range seen in the middle of the range seen to date during June.

Option watch: Option volume was 26,189 contracts consisting of 13,413 Calls and 12,776 Puts. Volatility found its footing and finished higher across the board. Trades of note: 400 September 1.00/August 11.25 Diagonal Put Spreads trade 8, 500 September 12.00/October 13.00 Call Spreads vs 11.60 trade 13, 378 September 11.00 Puts vs 11.61 trade 20, 250 September 12.00/13.50 1x2 Call Spread trade 10, 1,000 October 11.25/March 14.00 Fences trade 1, 500 October 12.00/14.00 Call Spreads vs 11.60 trade 33, 300 October 12.00/11.50 Fences trade 8-12, 500 January 10.00 Puts trade 10, 500 January 12.50 Calls vs 12.45 trade 73, 1,500 March 10.50 Puts vs 12.45 trade 73, 700 March 12.75/14.75 1x2 Call Spreads vs 12.28 trade 23 and 548 March 13.00 Calls vs 12.23 trades 58. ATM Vol’s: August 11.50 Straddle 55-58 - vol 26.97, +1.3 % September 11.50 Straddle 90-94 - vol 26.35, +1.1 % October 11.50 Straddle 112-115 - vol 26.00, +1.1 % March 12.25 straddle 175-181 - vol 22.70, +.55 % May 12.00 Straddle 176-185 - vol 21.20, +.10 % Option Open Interest: Call 266,239 +5,384, Puts 225,799 +339 - total 267,263 +5,723

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.

This afternoon’s CFTC Commitment of Traders supplemental report showed a net spec long of 58,272 lots as of Tuesday’s close. The large specs were net log 40,081 lots after adding 8,637 new longs and covering 8,816 shorts. The small specs were net long 18,191 lots after liquidating 4,301 longs and adding 1,998 new shorts. The report showed a net index fund long of 234,091 lots – the index funds added 4,770 longs and 551 shorts on the week. Th futures only report showed the commercials to be net short 149,594 lots after liquidating 3,644 longs and adding 10,788 new longs.

In the USMCA region: US futures trading was again quiet – light activity in September at 26.00 and in January at 26.30 accounted for nearly all of the day’s activity. Prices settled three higher in September at 26.00 and unchanged elsewhere. On Tuesday USDA will publish its planted area report, showing actual are planted to sugar beets for the current crop. The prospective plantings report released at the end of March showed area up 1.0 % from 2019.

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: 25.80 25.95 26.15 26.35 26.65 26.85 Mexican peso v USD: 22.6657 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.

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