MORNING SUGAR REPORT

Friday April 26, 2024 

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Monday, May 6 – CONVENE NYC

World sugar futures have bounced this morning after
pronounced pressure yesterday. Spot May #11 is last 35
points higher at 19.83, trading from 19.35 up to 19.86 as of
6:45AM EST. July is last 32 higher at 19.48. Fewer than
20,000 contracts have traded between May and July to this
point. On spread, the May/July has traded from 30 to 38 over
and last at 38 points premium. The July/October has traded
from eight under to three under and last at two points discount.

SUGAR #11 OPEN INTEREST:

 K4: 58,693 -6,783
 N4: 341,431 +5,743
 V4: 180,165 +3,891
TOTAL: 831,294

OPTION WATCH:

June 19.50 straddle 89 vol 24.45 -.50%
July 19.50 straddle 151 vol 25.50 -.40%
Oct. 19.50 straddle 237 vol 24.35 -.45%
March 19.75 straddle 305 vol 21.50 -.25%
No trades of note at this time.

MACRO BYTE

Chevron Corp. surpassed expectations for a
second straight quarter as strong oilproduction
growth from
recent acquisitions helped the company
take advantage of crude
prices above $80 a barrel. Adjusted firstquarter
profit of $2.93 a share was 3 cents
higher than the average of analyst estimates
in the Bloomberg Consensus. Crude-oil
output of almost 2 million barrels a day
exceeded forecasts. Chevron is facing
questions from investors and analysts
over whether its portfolio has enough longterm
growth potential, especially if its $53
billion acquisition of Hess Corp. falls apart.
The deal hit a roadblock in March when
Exxon Mobil Corp. disputed Chevron’s
right to absorb Hess’ 30% stake
in a massive, Exxon-run oil project in
Guyana. Chevron outperformed rivals
during and after the pandemic
as investors admired its financial strength
and large shareholder returns. Last year, its
buybacks amounted to almost
$15 billion, or 5% of outstanding shares.
But with global oil demand hitting fresh
records and electric vehicles sales
stumbling, the industry is starting to target
crude-production growth once again.

LONDON #5

In London, the August is last $7.50 higher at $571.00 trading from $563.00 to $572.50 to this
point. The August/October spread is last $1.60 higher at $22.50 premium. The August/July
premium is last at $143.00, up $6.00 on the week.

CFTC COMMITMENT OF TRADERS PREVIEW

Today’s CFTC Commitment of Traders report incorporates a period where May #11 traded
from 19.17 up to 20.15, the lowest the market had seen trade nearby since January 2023. In this
most recent period, we believe that the supplemental spec position in Sugar #11 has gone from a
23,076-lot short to 45,000 lots short. May open interest has gone from 100,751 to 65,476. July
open interest has gone from 305,296 to 335,688. Total open interest has gone from 819,977 to
827,078 lots.

GLOBAL FUNDAMENTALS

The Brazilian lineup of raw sugar waiting to load by vessel totals 3.53 million tonnes, up over
1.5 million tonnes over the past two weeks, according to Williams SA, and more than the 2.53
million tonnes one year ago

Prominent destinations:

 Canada: 152,195 tonnes
 Nigeria: 439,060 tonnes
 Saudi Arabia: 170,870 tonnes

S&P Global Commodity Insights has forecast Russian sugar production in 2024-25 to reach
6.73 million metric tonnes, slightly below the 2023-24 sugar output of 6.84 million metric
tonnes (including production from syrup and molasses).

USMCA REGION – BALTIMIRE DOMINO SUGAR REFINERY UNITERRUPTED

As we detailed last evening, American Sugar Refining Inc. has announced that it is shipping
sugar to its Baltimore refinery through alternate channels following the collapse of the
Francis Scott Key Bridge last month. The Domino Sugar refinery in Baltimore has operated
without interruption, Marianne Martinez, a company spokesperson, said Thursday. The company,
which had six to eight weeks of supplies at the time of the bridge’s collapse, has also since
“identified alternative ways to receive raw sugar shipments.” Bloomberg reports that a “full-size
vessel” delivered raw sugar from Florida to the refinery on Wednesday via a new 20-foot channel,
and another full-size vessel is due this weekend.

CURRENCY UPDATE (YTD CHANGE):

 USD: 105.61 +4.42%
 BRL: 5.1480 -5.34%
 INR: 83.200 -0.13%
 MXN: 17.064 -0.01%

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.