MORNING SUGAR REPORT

Wednesday December 8, 2021 

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World sugar futures have traded higher again this morning. March #11 is last 26 points higher at 19.75, trading in a 19.36 to 19.76 range as of 10:45AM EST. May is last 27 higher at 19.31, trading from 18.94 to 19.32. More than 40,000 lots have traded between March and May to this point. On spread, the March/May has traded from 42 to 46 over and last at 44 points premium. The May/July has traded from 43 to 48 over and last at 47 points premium.

SUGAR #11 OPEN INTEREST:  H2: 344,301 -2,644  K2: 146,389 +2,867  N2: 121,131 -978 TOTAL: 857,621

SUGAR #11 OPTION WATCH

ATM Vols. f 19.75 straddle 48-53 vol 21.85 -.60% h 19.75 straddle 165-169 vol 24.25 +.10% k 19.25 straddle 216-220 vol 23.65 +.40% n 18.75 straddle 238-253 vol 22.75 +.20% trades of note: 1,350 k23 20.00/16.00 fences trade Flat/+3 (paper sells call) 522 h 20.50 calls trade 53 500 v 23.00/16.25 fences trade flat 500 f 18.50 puts trade 2

MACRO BYTE Pfizer Inc. and BioNTech SE said initial lab studies show a third dose of their Covid-19 vaccine may be needed to neutralize the omicron variant, results that will accelerate booster-shot drives around the world. Company researchers observed a 25-fold reduction in neutralizing antibody levels versus the variant, compared with the original strain of the virus, in people who got just two shots. However, boosting with an additional shot of the vaccine raised antibodies 25-fold against omicron, giving a similar level of the protective proteins as observed against those earlier versions after the standard two doses, the vaccine partners said in a statement. The lab findings indicate that two doses of the vaccine “may not be sufficient” to protect against infection with the omicron strain, the companies said in a release. Along with stimulating the booster push, that may increase the likelihood that an omicron-targeted shot may ultimately be required. Pfizer said this would be ready by March.

LONDON #5

In London, March is last $6.40 higher at $512.00, trading from $501.30 to $512.00 to this point. On spread, the March/May is last $0.10 higher at $4.50 premium. The March/March white premium is now trading $76.75, up $1.00 on the day.

GLOBAL FUNDAMENTALS

Cash-wise: The JOB Economia Index for sugar in 50kg bags in Sao Paulo is down 2.6% on the week and down 4% in the last two weeks at $478.00 per tonne (21.68 cts/lb), through December 3rd. The price equivalent for hydrous ethanol is down 3.0%–18.65 value, as levels have come under pressure over the last six weeks. Anhydrous ethanol prices are valued around 20.35, substantially lower. In a published note, Petrobras said it made decision yet on whether to lower fuel prices, contradicting a claim by the country’s President that it would lower prices by the end of December. The President also asked motorists to post photos of the fuel prices when refueling so that the government can monitor if the price drop is passed on at the pump.

From January to August 2021, Brazil’s sugar exports reached 23.7 million metric tonnes, up 26% from the same period in 2020. China (4.7M MT), Algeria (2.4M MT) and Bangladesh (2.3M MT) were the main destinations of sugar exports from Brazil, with a combined 35% share of total exports. These countries were followed by India, Indonesia, Nigeria, Morocco, Malaysia, Saudi Arabia, Iraq, the United Arab Emirates, Canada and Egypt, which together accounted for a further 51%.

Kellogg has reported that the employees at its cereal plants have rejected the tentative agreement for a new five-year contract, prolonging the ongoing strike at its plants in Battle Creek, Michigan; Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis, Tennessee. Chris Hood, president of Kellogg North America stated that the "prolonged work stoppage has left us no choice but to continue executing the next phase of our contingency plan, including hiring replacement employees in positions vacated by striking workers."

GLOBAL CURRENCY UPDATE  USD: 96.454 +0.02%  BRL: 5.6426 +0.66%  INR: 75.425 -0.06%  MXN: 21.195 +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.