Jenkins Sugar Group Evening Report                                         
                                      
Friday January 22, 2010
 
World sugar futures turned in a muted session’s worth of consolidation. Prices finished 56 lower in March and from 67 lower in July to 21 lower in red May. Final volume was 92,895 lots. Prices dipped briefly beneath Thursday’s low early this morning and made a more meaningful probe lower near mid-morning in New York, but the main product of the day’s dealings was consolidation. While the March spent virtually the entire session below unchanged, it is important to remember that the March dropped 45 points post-settlement on Thursday afternoon. On spread, March/May, which last traded at 115 over Thursday, traded from 111 to 129 and last at 116 over today. May/July traded from in to 336 over and then widened to finish the session at 363 over. Cash-wise, TSTC in Thailand estimates that sugar prices will climb 20 % over the next six months due to constant sugar export demand while acknowledging that prices may decline in the second half of the year as the new Brazilian crop becomes available. The TSTC estimates that Thai sugar production could be lower than expected at 7.1 million tonnes due to poor weather with exports slightly higher than last year’s 5.0 million tonnes. This compares with the Office of Agriculture Economics’ estimate of exports at 5.52 million tonnes. Traders in Thailand said sugar exports in 2009 were 5.1 million tonnes compared with 4.9 million tonnes exported in 2008. Today’s CFTC Commitment of Traders Report showed a net spec long position of 241,529 lots as of Tuesday’s close. The large specs added 7,543 longs and added 3,531 new shorts, and were net long 194,919 lots. The small specs added 4,040 longs and 703 shorts and were net long 46,610 lots. The combined report showed a net spec long of 236,072 lots. The large specs were net long 189,379 lots and the small specs were net long 46,694 lots. The supplemental report showed a net index fund long of 143,795 lots – down dramatically from the 187,769 lots reported as of January 4th.
 
In the NAFTA region: US futures trading was again active with meaningful volume changing hands in the upper reaches of the past few days’ range. Prices settled 20 higher in March and from 10 lower in May to 77 higher in November. Most notably, nearly 200 lots changed hands in May between 41.50 and 42.00. The May futures settled at 37.93 one week ago and 34.60 on January 1st. This afternoon, Domino Sugar announced a 53.00 fob refinery refined sugar price, matching the increase announced by United Sugars on Thursday, but undercutting Imperial Sugar’s announced price by 1.00. The latest update from US Sugar Corp in Florida was troubling. While no estimate of damage was issued, a company spokesperson stated that 50 % of the un-harvested cane was damaged by the recent freeze. It was estimated that the company would need four to six weeks to harvest and process the most severely damaged cane and that the less damaged cane would deteriorate in the interim.
 
Regards,
 
Jenkins Sugar Group, Inc.
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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.