MORNING SUGAR REPORT

Tuesday April 23, 2024 

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Monday, May 6 – CONVENE NYC

World sugar futures have grinded slightly higher to start the
day, which would be a modest four-day gain (19.17-20.15).
Spot May #11 is last 15 points higher at 19.95, trading from
19.76 up to 19.99 as of 6:15AM EST. July is last 15 higher
at 19.77. Fewer than 15,000 contracts have traded between
May and July to this point. On spread, the May/July has traded
from 17 to 21 over and last at 19 points premium. The
July/October has traded from eight under to five under and
last at six points discount.

SUGAR #11 OPEN INTEREST:

 K4: 87,727 -9,316
 N4: 323,877 +8,851
 V4: 172,632 +2,181
TOTAL: 831,042

OPTION WATCH:

June 19.75 straddle 103 vol 26.03 -1.1%
July 19.75 straddle 159 vol 25.77 -.40%
October 19.75 straddle 239 vol 23.90 -.40%
March 20.00 straddle 298 vol 20.60 unch
Trade of note:
250 m 20.50 calls trade 22

MACRO BYTE

Current conditions find the Bloomberg Dollar
Spot Index hovering close to the highest in five
months, after posting large gains in recent
months against most major currencies, including
the South Korean won, the Japanese yen and the
Swiss franc. That prompted South Korea
Finance Minister Choi Sang-mok
and his Japanese counterpart Shunichi Suzuki
last week to express “serious concerns.” But
unlike episodes past, the latest bout of dollar
strength isn’t generally something to fear on a
US or global level.

When the world gets scary or
uncertain, investors tend to rush for the warm
embrace of the buck, which sometimes makes
its appreciation feel like a warning. For
example, the dollar’s flight-to-safety credentials
were on display in the early days of the Covid-
19 pandemic and the 2016 Brexit vote. That
hasn’t been the main story in the current
episode, however, and to prove it, consider the
currencies that the dollar has been appreciating
against this year: other flight-to-safety
currencies. Several risk-on currencies such as
the Mexican peso and Canadian dollar have
done comparatively fine.

In reality, today’s dollar strength is mostly a
straightforward reflection of interest-rate
differentials. With the Federal Reserve expected
to keep policy rates high for longer than peers,
market pricing finds 10-year US Treasury notes
yielding several percentage points more than
developed- market counterparts.

LONDON #5

In London, the August is last $5.10 higher at $575.70 trading from $570.70 to $577.50 to this
point. The August/October spread is last $1.80 higher at $19.60 premium. The August/July
premium is last at $140.00, up $3.00 on the day.

GLOBAL FUNDAMENTALS

Indian sugar production, following diversion to ethanol, is forecast at 28.5 million tonnes for
2024/25, according to S&P Global Commodity Insights, with of course a massive focus on the
health of the June-September monsoon, which is currently expected to be much better than
average.

On a cash-basis, May shipment Santos Brazil sugars are currently May 2024 #11 +15 bid/+20
offered. June shipment Santos is now May 2024 #11 flat bid/+5 offered. Meanwhile, May-
July15 shipment Thai Hi-pol sugar is currently May 2024 #11 +200 bid, while July-
September15 shipment Thais are valued at July 2024 #11 +235.

GLOBAL WEATHER – BRAZIL CS REMAINS DRY TO END APRIL

CURRENCY UPDATE (YTD CHANGE):

 USD: 106.10 +4.72%
 BRL: 5.1666 -6.08%
 INR: 83.725 -0.08%
 MXN: 17.112 -0.87%

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.