Friday May 3, 2024

World sugar futures settled little changed following a quiet session. July settled three higher at 19.28, October one higher and the back months from unchanged to 10 higher. Outright traded volume was 83,322 lots. On spread, July/October traded from four under to two over and last at par. October/March traded from 24 under to 28 under and last at 28 under. The Brazilian real rallied to 5.0449 to the dollar early in today’s session – the strongest read versus the dollar dating back to April 10th. WTI Crude made another incremental new low, printing $78.00 today - down nearly 7.0 % on the week. Sugar #11 gained one percent (19 points) on the week.
Option watch: Sugar option volume was 13,237 contracts consisting of 8,991 Calls and 4,246 Puts. Volatility was under pressure throughout the session. Trades of note: 2,200 July 16.00 Puts trade 5-6 (paper sells), 1,000 July 21.25/21.50 Call Spreads trade 3 and 650 March’25 19.75 Calls vs 19.65 trade 145.
ATM Vol’s:
June 19.25 Straddle 69 - vol 23.76, -4.3 %
July 19.25 Straddle 137 - vol 25.10, -2.4 %
October 19.25 Straddle 204 - vol 24.75, -1.0 %
March 19.50 Straddle 292 - vol 21.05, -1.0 %
Option Open Interest: Calls 326,959 +1,689, Puts 224,524 +1,677 - total 551,483 +3,366
The government in Russia announced a ban on sugar exports through August 31st, except for those to Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Taiwan has tendered to buy 34,000-38,000 tonnes of sugar for September 1st – October 31st, 2024 arrival, max 99.49 pol and Louis Dreyfus Company was awarded the transaction.
This afternoon’s CFTC Commitments of Traders supplemental report showed a net short position, excluding the index position, of 48,407 lots as of Tuesday’s close, in line with expectations. The large specs were net short 37,684 lots after liquidating 5,689 longs and adding 3,970 new shorts. The small specs were net short 10,723 lots after liquidating 2,657 longs and adding 1,641 new shorts. The report showed a net index fund long of 166,710 lots. The funds added 7,904 longs and 4,666 shorts on the week. The futures-only report showed a net commercial short of 29,820 lots. The combined futures and options report showed a net commercial short of just 3,848 lots after the commercials added 9,325 longs and covered 1,357 shorts.
In the USMCA region: US futures settled unchanged after another uneventful session. July settled 24 lower at 37.75 – a new 14-month low settlement - and the back months settled unchanged.
Conadesuca has released a Mexican sugar crop progress update through April 27th (Week 30) showing total production from the crop to date of 4.170 million tonnes tel quel. Week 30 production was 178,790 tonnes, 5.5 % lower than last year. Area harvested during the week was 6.5 % lower at 29,341 hectares. As of the report date eight of the 48 mills active this campaign had
finished grinding compared to 12 of 48 mills last year. Total production of sugar with polarization of less than 99.2 degrees for shipment to the US under the Suspension Agreements stands at 279,923 tonnes compared to 638,036 tonnes last year.
Regards,
JSG Commodities
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(203) 853 3000
JSG Indications:
Q2'24
Q3'24
Q4'24
Q1'25
Q2'25
Q3’25
Q4’25
Raws:
38.00
38.00
38.00
38.00
37.50
37.50
37.50
Mexican peso:
16.9702
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.