Jenkins Sugar Group Morning Report

Wednesday, August 25, 2010

World sugar futures have been pressured lower this morning, trading thus far in very light conditions.  October is now 20 ticks down at 19.96, having traded from 20.16 down to 19.83.  March has traded from 19.30 to 19.05 and last five points lower at 19.20.  Approximately 7,500 contracts have traded in October to this point.  On spread, the October/March has traded from 88 into 72 over and last at 76 points premium.  The March/May has traded from 95 to 102 points premium and last at 100 over. 

Copersucar has forecast that sugar output in Brazil’s center-south region may be cut by one million metric tonnes, due to continued dry weather.  Sugar output in the region may drop between 33 and 34 million tonnes, down from a July estimate of 34-35 million tonnes.  “The damage caused by dryness is irreversible.  The crop size could be even smaller if dryness persists,” said Paulo Roberto de Souza, chief executive officer of Copersucar.  The next five days in Sao Paulo are forecast to be sunny and dry: http://www.wunderground.com/global/stations/83780.html

Mills in India want government permission to export white sugar to help meet obligations made when importing duty-free raws almost five years ago.  Millers claim they are obliged to export 967,000 tonnes of sugar by March under a policy from 2004/05, when the country allowed duty free imports of raws on a condition that an equal amount of white sugar be exported.  Farm Minister Sharad Pawar said this month the government would allow exports only after reviewing the progress of cane planting in August. 

In Russia, a sugar beet test conducted this past weekend showed an average root weight of 266 grams compared with 383 grams on the same date last year and 423 grams in 2008.

Best Regards,

Jeff Dobrydney

Jenkins Sugar Group

203.563.6100

www.jenkinssugar.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.