MORNING SUGAR REPORT

Friday July 2, 2021 

World sugar futures have bounced from yesterday’s late selloff, in average volume. October #11 is last 25 higher at 18.20 as of 11:00AM EST, trading from 17.89 up to 18.29 to this point. March is last 29 higher at 18.42. More than 40,000 lots have traded between October and March to this point. On spread, the October/March has traded from 12 under to 23 points discount and last at 21 under. The March/May has traded from 95 to 85 over and last at 88 points premium. SUGAR #11 OPEN INTEREST:  V1: 444,758 +6,874  H2: 181,453 +3,305  K2: 90,110 +2,492 TOTAL: 911,278

SUGAR #11 OPTION WATCH

ATM Vols. Q 18.25 STRADDLE 81-88 VOL 29.50 -1.0% U 18.25 STRADDLE 151-156 VOL 29.65 -.30% V 18.25 STRADDLE 198-203 VOL 30.30 UNCH H 18.25 STRADDLE 299-308 VOL 26.35 UNCH TRADES OF NOTE: 400 Q 18.00/17.00 PS VS 19.00 CALL TRADE 13 200 U 17.50/16.75 PS VS 18.22 TRADE 23 300 V 14.50/15.50/16.00/17.00 PUT CONDORS VS 18.15 TRADE 19 400 V 18.50/21.00 CS VS Q 18.00C VS 18.15 TRADE 9 THE LIVE BUYING IN V 22.00 CALLS YESTERDAY LOOKS TO BE NEW BUYING, OI 8,613 + 5,418. ANOTHER 1,500 HAVE TRADED THIS MORNING.

LONDON #5

In London, August is last $1.60 at $452.30, trading from $447.40 to $455.80 to this point. On spread, the

MACRO BYTE . OPEC+ allies were locked in a tense diplomatic standoff on Friday after a dispute that threatens to block measures to ease the surge in oil prices. As of early afternoon in London, the group had failed to find a way out of the impasse, delegates said. If the negotiations fail, the world may not get the extra crude supplies it was expecting. That would squeeze an already tight market, risking a further inflationary price spike. “If OPEC+ fails to reach a compromise, the automatic fallback will be to roll over current quotas into August and beyond,” said Matthew Holland, a geopolitical analyst at consultant Energy Aspects Ltd. “That would lead to sharply higher prices, something most OPEC+ members want to avoid.”August/October is last $2.00 lower at $20.90 discount. The October/October white premium is now trading $71.50, up $3.00 on the day.

GLOBAL FUNDAMENTALS

Cash-wise: Today’s CFTC Commitment of Traders report incorporates a period where October traded from 16.79 up to 17.66 range. We believe that the supplemental spec position has gone from a 184,912-lot long to a long position of around 202,100 lots. October open interest has gone from 417,709 lots to 436,418 lots. March open interest has gone from 175,300 lots to 175,911. Total open interest has gone from 922,717 to 892,168. UNICA expects Brazil’s CS cane harvest will be around 540 million mt. There is no forecast for a pick up in rain which means the ATR will also be affected. Pecege, meanwhile, reduced its forecast to 560 million mt due to lower yields and a smaller planted area as farmers switched to other crops. It forecast the average ATR value in 2021/22 at 32% higher than 2020/21, however, or 18% adjusted for inflation. Similarly, millers expect good years ahead with 2022/23 futures at USD 16-17c/lb. Hurricane Elsa Update Below from NOAA:

GLOBAL CURRENCY UPDATE  USD: 92.504 +0.07%  BRL: 5.0422 -1.45%  INR: 74.557 -0.33%  MXN: 20.042 +0.45%

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