MORNING SUGAR REPORT

Friday October 29, 2021

2021 JSG Commodities NYC Conference December 16th – Convene 1 Liberty Plaza - NYC

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World sugar futures have come under month-end pressure this morning in light volume.There has been some nearby spread selling as well. March #11 is last 35 lower at 19.27 as of 10:45AM EST, trading from 19.70 down to 19.24 to this point. May has traded from 19.34 down to 18.95 and last 29 lower at 18.97. Fewer than 30,000 lots have traded between March and May to this point. On spread, the March/May has traded from 37 to 28 and last at 30 over. The May/July has traded from 31 to 25 over and last at 26 points premium.

SUGAR #11 OPEN INTEREST:  H2: 394,567 +1,552  K2: 142,558 +123  N2: 122,382 +474 TOTAL: 881,257 (lowest of 2021, lowest since 10/2019)

SUGAR #11 OPTION WATCH ATM Vols. z 19.50 straddle 81-85 vol 24.00 -.80% f 19.50 straddle 139-144 vol 25.20 -.10% h 19.50 straddle 226-231 vol 26.90 unch k 19.25 straddle 260-272 vol 25.55 unch n 19.00 straddle 288-302 vol 24.60 unch trades of note: 500 z 19.00/18.00 ps trade 15 250 z 19.00/18.25 ps trade 13

MACRO BYTE U.S. employment costs rose at the fastest pace on record in the third quarter as companies across a variety of sectors raised wages against a backdrop of labor shortages. The employment cost index, a broad gauge of wages and benefits, rose 1.3% from the prior quarter, according to Labor Department data released Friday. The gauge increased 3.7% from a year earlier. Compensation gains were broad-based across sectors, underscoring how a tight labor market has put pressure on many different types of firms to raise wages. Wages and salaries for civilian workers also rose at a record pace, surging 1.5% in the quarter. Unlike the average hourly earnings figures in the monthly jobs report, the ECI isn’t impacted by employment shifts across industries and occupations -- something that’s been particularly severe amid the pandemic. 500 f 19.00 p trade 45-47 500 k 23.00 c trade 46-47

LONDON #5

In London, December is last $7.10lower at $508.50, trading from $518.80 to $507.20 to this point. On spread, the December/March is last $0.30 higher at $9.30 premium. The December/March white premium is now trading $83.50, up $1.50 on the day.

GLOBAL FUNDAMENTALS

Cash-wise: Today’s CFTC Commitment of Traders report incorporates a period where March traded from 18.84 up to 19.69. We believe that the supplemental spec position has gone from a 158,311-lot long to a long position of around 166,275 lots. March open interest has gone from 393,168 lots to 391,918. May open interest has gone from 138,677 to 141,410. Total open interest has gone from 869,052 to 874,742.

Brazil’s Center-South region had 10.31 billion liters in ethanol stocks as of mid-October, up 1.7% from two weeks ago, but 13% down on year and a 4-year low for the period, MAPA data showed. Anhydrous stocks are up 16% on year, however, at 4.4 billion liters, while hydrous stocks are 27% lower at 5.91 billion liters.

The Indian Sugar Mills Association released its first advanced estimate of the area under sugarcane cultivation and sugar production in India for the 2021-22 crop year. ISMA estimates that net India domestic sugar production in the 2021-22 crop year will be 30.5 million tonnes, 500,000 tonnes lower than their preliminary estimate of 31.0M million tonnes.

GLOBAL CURRENCY UPDATE  USD: 93.368 -0.03%  BRL: 5.6065 -1.21%  INR: 74.912 +0.09%  MXN: 20.168 +0.10%

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

Contact Information

JSG Commodities

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Frank Jenkins
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