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Friday, April 19, 2024

Top Trades for Fri, 13 Sep 2019 11:19 – Making Sweet Money With Sugar and Oil

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Top Trades for Fri, 13 Sep 2019 11:19 – Making Sweet Money With Sugar and Oil
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Oil right at $55, /RB coming off $1.55.  /BZ $60.33 should hold $60 so /CL is not a bad long at this line over the weekend – maybe something will blow up?  

Or at leas the Dollar could come down:

Honey badger don't care either way:

I'm liking Sugar (/SB) here at $10:50, fun to play.  /SBH20 takes you into March, catching Christmas and Easter demand and it's $11.96 so it can be played above $12 with tight stops below.

CANE is the ETF and this is usually the bottom (around $6) and, for the OOP, I'd like to just buy 20 of the Jan $6 calls for 0.60 ($1,200) and see how that goes.

SOFTS-Raw sugar prices slump to lowest level in almost one year By Reu

Dealers said October's discount to March SB-1=R was widening as excess nearby supplies remained a major concern despite expectations that the market to tighten slightly in the upcoming 2019/20 season.

* "The futures market will eventually raise its focus to next year. The October expiry though looms too large for now," said Commonwealth Bank of Australia analyst Tobin Gorey.

* Some Brazilian mills have canceled sugar delivery contracts with commodities traders at a cost, an operation known in the market as washout, as New York raw sugar futures touch contract lows and make ethanol even more attractive, millers and analysts said. October white sugar LSUc1 , which expires on Friday, was up $1.10 or 0.4 percent at $310.90 per tonne.

* India's sugar output could fall 20% to the lowest level in three years in 2019/20 after drought last year forced farmers to curb cane planting and as floods this year damaged crops in key growing areas, a senior industry official said on Thursday. December arabica KCc2 fell 1.55 cents, or 1.5 percent to $1.0185 per lb, falling back after the prior session's advance to a 1-1/2 month high of $1.0470.

* "Brazil has been witnessing dry weather recently which risks impacting the coffee crop, as the flowering season for coffee has started," ING said in a market note.