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MORNING SUGAR REPORT

Thursday December 9, 2021

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World sugar futures have traded lower this morning in modest volume. March #11 is last 19 points lower at 19.63, trading in a 19.87 to 19.53 range as of 10:30AM EST. May is last 15 lower at 19.26, trading from 19.47 to 19.16. Fewer than 30,000 lots have traded between March and May to this point. On spread, the March/May has traded from 42 to 36 over and last at 37 points premium. The May/July has traded from 46 to 41 over and last at 41 points premium.

SUGAR #11 OPEN INTEREST:  H2: 348,926 +4,625  K2: 148,263 +1,874  N2: 119,206 -1,088 TOTAL: 865,068

SUGAR #11 OPTION WATCH

ATM Vols. f 19.75 straddle 41-46 vol 19.85 - 1.85% h 19.75 straddle 158-161 vol 23.40 -.60% k 19.25 straddle 208-211 vol 22.85 -.60% n 18.75 straddle 231-243 vol 22.15 -.45% trades of note: 4,875 h 19.50/20.50 cs trade 34-36 (paper selling, we would assume rolling) 1,500 h 20.25/21.00 cs vs 19.75 trade 22 (paper buys) 750 n 19.00 calls trade 115-116 (paper sells)

MACRO BYTE Applications for U.S. state unemployment benefits declined last week to the lowest level since 1969, illustrating difficulties adjusting the raw data for seasonal effects. Initial unemployment claims totaled 184,000 in the week ended Dec. 4, down 43,000 from the prior period, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 220,000 applications. The drop pushes the level of applications below the plunge two weeks earlier in what many economists attributed to difficulties adjusting for seasonal swings around the holidays. On an unadjusted basis, initial claims climbed by about 64,000. Requests for jobless aid have trended down since the start of the year as Americans return to work and employers focus on retaining staff to meet robust demand. LONDON #5 In London, March is last $4.40 lower at $509.30, trading from $513.50 to $505.30 to this point. On spread, the March/May is last $1.10 lower at $2.40 premium. The March/March white premium is now trading $76.50, down $0.50 on the day.

GLOBAL FUNDAMENTALS

Cash-wise: According to Williams SA the Brazilian vessel line-up of raw sugar waiting to load is now 989,954 tonnes of sugar, hardly changed on the week. This compares with 981,077 tonnes last week and 1.72 million tonnes last year. Approximately 200,000 tonnes of sugar shipped on the week. Please see our attached chart. Here are the new named nominations: IRAN 41,479 PARANAGUA PASA ALVEAN CHINA 63,000 PARANAGUA SOCEPPAR CAO IRAN 44,250 PARANAGUA SOCEPPAR ALVEAN ALGERIA 47,250 PARANAGUA SOCEPPAR NOLIS SPAIN 30,000 MACEIO SUCDEN USA 20,061 MACEIO CSC CANADA 35,200 MACEIO MAN TOTAL: 281,240

Through November, China has produced 759,000 tonnes of sugar during the 2021-22 crop year, which was -34% lower than the 1.2 million tonnes of sugar produced at the end of November 2020. In November 2021, sugar production from sugarcane was 116K MT TQ, -100K MT lower year on year, while sugar production from sugar beet was 643K MT TQ, -254K MT lower year on year.

India has achieved the highest ever ethanol blending of 8.1% with petrol in the just concluded 2020-21 (December-November) supply year, the government claimed today.

GLOBAL CURRENCY UPDATE  USD: 96.245 +0.37%  BRL: 5.5670 -0.66%  INR: 75.520 -0.06%  MXN: 21.070 -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.

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