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MORNING SUGAR REPORT

Monday June 29, 2020

WORLD SUGAR #11

World sugar futures have hovered around unchanged to start the day and the trading activity has grinded to a near-halt. July is last one higher at 11.58, trading from 11.33 to 10.63 so far. October is last unchanged at 11.62. Fewer than 35,000 contracts have traded between July and October to this point. On spread, the July/October has traded nine to two under and last at two points discount. The October/March has traded from 66 to 63 under and last at 64 points discount.
LONDON SUGAR #5
In London, August is last $2.10 lower at $349.10, trading from $351.40 to $347.70 to this point. On spread, the August/October is down $2.00 last at $0.70 premium. The August/July white premium is hovering around $93.00, down $20.00 on the week.

SUGAR #11 OPEN INTEREST
July 2020: 10,038 -9,387 October 2020: 414,019 +124 March 2020: 192,327 +2,301 Total: 922,983
SUGAR #11 OPTION WATCH
q 11.50 strad 53-56 vol 27.45 unch u 11.50 strad 88-94 vol 26.65 unch v 11.50 strad 111-114 vol 26.30 unch h 12.00 strad 173-179 vol 23.05 unch k 12.00 strad 174-186 vol 21.30 unch trade of note: 250 q 12.00 calls trade 10


MACRO BYTE
A fresh swarm of desert locusts has entered Uttar Pradesh, India’s biggest sugarcane grower, via capital city Delhi and the northern state of Haryana, according to the federal farm ministry. Operations to control the grasshoppers are in full swing in the states of Rajasthan, Madhya Pradesh, Uttar Pradesh, Haryana, Gujarat, Punjab and Maharashtra, the ministry said in a statement late Saturday. Tractors, fire engines and drones are engaged in spraying pesticides to kill them, it said.




















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GLOBAL FUNDAMENTALS
Cash-wise: Friday’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. The speculative positioning across a basket of agricultural commodities once again saw mixed changes over the week, with the spec position in soybeans and sugar increasing by 5.0% of its historical range while the same position in Kansas wheat, Chicago wheat, and London cocoa fell by 7.0% of its historical range. Corn is still the shortest agricultural commodity on the board while sugar is now the longest.

Indian sugar mills have signed contracts for 5.2 million tonnes of exports and could ship out 5.5 million metric tonnes in total before the season ends in September. ISMA had projected total 2019/20 exports at 5.2 million mt, which could climb to 6.0-7.0 million metric tonnes in 2020/21 as Thailand might struggle to export more than 6.0 million mt. Indian sugar mills and distilleries have contracted to sell 1.7 billion liters of ethanol to oil refiners in the year that began December 1st, according to the ISMA. Of the total contracted, 925.0 million liters have already been supplied between December 1st and June 22nd, achieving an average blending of 5.1% with gasoline across the country. The Indian government is targeting an ethanol production number of 3.0-3.5 billion liters in 2020-21. Finally, Locust Swarm Enters India's Sugar Cane Region.
GLOBAL CURRENCY UPDATE
• USD: 97.281 -0.16% • BRL: 5.4388 +0.85% • INR: 75.580 +0.08% • MXN: 23.165 -0.50%


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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