Monday June 29, 2020

World sugar futures eased to a new three week low before recovering – July settled 16 higher at 11.71, October 15 higher at 11.77 and the back months from 14 to six higher. Outright traded volume was 105,947 lots. July expires tomorrow. On spread, July/October traded from nine under to two under and last at six under. July OI stood at 10,038 lots prior to today’s activity (9,011 July/October spreads, 728 July EFP’s eight July EFS’s). October/March traded from 66 to 61 under and last at 63 under. WTI Crude ground steadily higher through the Sugar trading day, gaining roughly 3.0 % by 12:30 p.m. in New York. The BRL spent the session consolidating the losses seen on Friday.

Option watch: Option volume was light with 5,991 contracts changing hands. Volume consisted of 4,659 Calls and 1,332 Puts. Volatility moved lower across short dated positions. Trades of note: 300 August 12.00/12.75 Call Spreads vs 11.78 trade 14, 275 January 12.50 Calls vs 12.22 trade 66, 150 March’22 12.00 Calls vs 12.05 trade 115. ATM Vol’s: August 11.75 Straddle 53-56 - vol 26.45, -1.0 % September 11.75 straddle 90-94 - vol 26.35, -.30 % October 11.75 Straddle 113-116 - vol 26.08, -.20 % March 12.50 Straddle 180-186 - vol 23.15, unchanged May 12.25 straddle 180-189 - vol 21.35, unchanged Option Open Interest: Calls 268,152 +1,913, Puts 229,200 +3,421 - total 497,372 +5,333

Indian sugar mills have signed contracts for 5.2 million tonnes of exports and could ship out 5.5 million tonnes in total before the season ends in September. ISMA had projected total 2019/20 exports at 5.2 million tonnes, which could climb to 6.0-7.0 million tonnes in 2020/21 as Thailand might struggle to export more than 6.0 million tonnes. 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.

In the USMCA region: US futures trading was extremely quiet today. Prices settled unchanged in September at 26.00 and from unchanged in November to 16 lower in January. The USDA released updated crop condition reporting for the US beet producing states this afternoon. The crop in Colorado was rated 63 % good or excellent as of Sunday; the crop in Idaho 91 % good or excellent; the crop in Michigan was rated 42 % good or excellent; the crop in Minnesota was rated 98 % good or excellent (56 % excellent); the crop in Montana was rated 85 % good or excellent; the crop in North Dakota was rated 97 % good or excellent (51 % excellent); and the crop in Wyoming was rated 100 % good. The cane crop in Louisiana was rated 70 % good or excellent.

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: 23.0631 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.