MORNING SUGAR REPORT

Thursday September 9, 2021

WORLD SUGAR #11

World sugar futures have fallen lower this morning in good volume on the second day of the index roll as the market searches for new fundamentals. October #11 is 29 points lower at 19.20, trading from 19.55 down to 19.19 to this point. March is last 27 lower at 19.80. Over 45,000 lots have traded between October and March to this point. On spread, the October/March has traded from 64 to 57 under and last at 62 points discount. The March/May has traded between 54 and 47 points premium and last at 48 over.

LONDON SUGAR #5

In London, October is last $5.20 lower at $476.00 trading from $483.60 to $475.00 to this point. On spread, the October/December is up $1.30 higher last at $20.00 discount. The October/October white premium is last around $53.00, down $1.00 on the day.

SUGAR #11 OPEN INTEREST October 2021: 344,585 -18,440 March 2022: 293,417 +6,726 May 2022: 137,552 +4,597 Total: 1,052,962

GLOBAL FUNDAMENTALS

Cash-wise: According to the ISMA, Indian mills are forecast to export 6.0 million tonnes of sugar in this upcoming crop year, down from the estimated 7.0 million tonnes in this past year. Sugar from India has been exported mainly to Indonesia, Afghanistan, Sri Lanka, Somalia, United Arab Emirates, Saudi Arabia and Sudan. In May, the Indian government cut the subsidy on exports to from 6,000 rupees a

MACRO BYTE Federal Reserve Bank of Atlanta President Raphael Bostic believes the Fed will be able to pull back on its asset buying campaign this year, though he doesn't expect a decision to do so will come at the U.S. central bank's meeting this month. Mr. Bostic, who for most of this year has advocated the Fed pare its $120 billion a month in Treasury and mortgage bond stimulus, said in an interview with The Wall Street Journal that recent data and the resurgence of the coronavirus pandemic call for more time before a decision on reducing stimulus for the economy. Tap here to add a caption tonne to 4,000 rupees, with world prices remaining so strong. There have been talks about cutting the subsidy all together.

In Brazil, a fire developed Monday on a sugarcane plantation in Paraíso (SP), in the northwest of the state of Sao Paulo. According to the Fire Department, the flames spread quickly and consumed an area of pasture and native forest. Corporation teams worked for three hours to get the fire under control. Three water trucks from the city hall and a plant helped with the occurrence. In Bálsamo (SP), another cane field was also destroyed by fire this past Monday. We will be monitoring this situation that has clearly developed due to the months of historic dry weather.

Russia should consume close to 5.7 million mt of sugar in 2020/21, down from 6.131 million mt in 2017/18 because of a decreasing population, according to an expert at IKAR. As such, demand should be in line with output next season. The agency added that the development of an intervention fund would be positive for the sector although the state will only start buying up sugar by autumn 2022. Meanwhile, a government official highlighted that the price of sugar, among other essential commodities, was generally stable.

GLOBAL CURRENCY UPDATE • USD: 92.710 +0.25% • BRL: 5.1719 -0.29% • INR: 73.602 -0.10% • MXN: 19.926 -0.61%

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