MORNING SUGAR REPORT

Thursday March 31, 2022

World sugar futures have traded around unchanged to slightly lower to start the day. May #11 is last 10 lower at 19.38 as of 10:30AM EST, trading from 19.24 to 19.52. July is last nine lower at 19.27, trading from 19.13 to 19.40. More than 30,000 lots have traded between May and July to this point. On spread, the May/July has traded from 10 over to 13 over and last at 11 points premium. The July/October has traded from two under to six under and last at four points discount.

SUGAR #11 OPEN INTEREST:  K2: 279,588 -4,158  N2: 189,435 +6,180  V2: 133,000 +1,032 TOTAL: 825,578 (last time below 800k: 11/2018) LONDON #5 In London, May is last $4.00 higher at $541.40 trading from $534.30 to $546.90. On spread, the May/August is last $0.80 higher at $9.70 premium. The May/May white premium is last $114.00, $4.00 higher on the day.

OPTION WATCH k 19.50 straddle 84-87 vol 24.20 -.60% m 19.25 straddle 134-139 vol 24.85 -.15% n 19.25 straddle 176-179 vol 25.20 unch v 19.25 straddle 242-247 vol 23.40 unch trades of note: 250 k 20.00 calls trade 21 274 n 19.25 straddles trade 177 200 n 19.25 straddles vs 19.25 trade 178 250 m/n 20.50 Call Calendars trade 20

MACRO BYTE OPEC and its allies once again stood back from the crisis engulfing oil markets, refusing to deviate from their schedule of gradual production increases as the U.S. considered an unprecedented release from emergency crude stockpiles. The cartel ratified the 432,000 barrel-a-day supply increase scheduled for May at an online meeting on Thursday, delegates said. The decision was in line with expectations and very much peripheral to the main driver of prices on the market -- President Joe Biden’s plan to release about 1 million barrels a day from crude reserves for several months to ease the disruption caused by Russia’s invasion of Ukraine. Brent crude, the international benchmark, was down 5.6% at $107.05 as of 1:05 p.m. in London. Consumers are taking matters into their own hands because the Organization of Petroleum Exporting Countries and its allies are resisting being drawn into the political crisis caused by the military aggression of one of their leading members. OPEC+ hurried


GLOBAL FUNDAMENTALS

Cash-wise: According to Williams SA the Brazilian vessel line-up of raw sugar waiting to load is now 1.031 million tonnes of sugar, which is slightly lower on the week. This compares with 1.25 million tonnes last week and 1.16 million tonnes last year. Approximately 115,000 tonnes of sugar shipped on the week. Please see our attached chart. Here are the new named nominations: ALGERIA 42,114 PARANAGUA PASA SUCDEN BLACK SEA 40,800 MACEIO SUCDEN TOTAL: 82,914

Petrobras has told investors that its fuel price policy may change, according to Bloomberg. “In the future, there may be periods during which the prices of our products will not be on par with international product prices. In light of the statements made by the Brazilian President, a new Executive Board and management team or Board of Directors may propose changes to our pricing policy, including a decision that such policy does not seen alignment with international parity pricing.”

We reported last evening, and must note again, Pakistani sugar production is expected to be 7.2 million tonnes in 2021-22, up over 25% from 5.7 million metric tonnes in 2020-21, and is expected to increase to 7.3 million tonnes in 2022-23, according to S&P Global Commodity Insights. “The projected 3.0 million tonne surplus in the domestic sugar market would mean the availability of nearly 2.5 million tonnes of exportable sugar as the government is also considering creating reserve stocks. About half of this would already be produced in the 2021-22 harvest, by April,” according to S&P.

GLOBAL CURRENCY UPDATE  USD: 98.856 +0.36%  BRL: 4.7388 +1.21%  INR: 76.301 +0.34%  MXN: 20.170 -0.41%

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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