Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Thursday closed up +0.11 (+0.75%), and Mar London white sugar #5 (SWH21) closed up +2.50 (+0.62%).
Sugar prices on Thursday posted moderate gains as they rebounded from Wednesday's 3-1/2 week lows. A sharp rally in the Brazilian real on Thursday fueled short-covering in sugar futures. The real rose +1.76% Thursday to a 4-month high against the dollar, which discourages export selling by Brazil's sugar producers.
On Wednesday, sugar prices posted 3-1/2 week lows on increased sugar output from India after the India Sugar Mills Association (ISMA) reported that India Oct 1-Nov 30 sugar production surged +107% y/y to 4.29 MMT due to an early start of the crushing season.
Ample sugar production in Brazil is negative for prices after Unica reported last Wednesday that Brazil's Center-South sugar production in the first half of November rose +57 y/y to 1.242 MMT, above expectations of 1.120 MMT. The percentage of ca... Read more