Sugar #16 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Tuesday closed up +0.06 (+0.47%), and Oct London white sugar #5 (SWV20) closed down -0.60 (-0.15%).
Sugar prices on Tuesday settled mixed as they consolidated recent gains. NY sugar prices on Tuesday recovered from early losses and closed higher on strength in the Brazilian real, which rose +0.39% against the dollar. A stronger real discourages export selling by Brazil's sugar producers.
Sugar also found support Tuesday on a rally in crude oil. Crude prices rose more than +2% Tuesday to a 1-week high, which benefits ethanol prices and is bullish for sugar since it may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
On Monday, NY sugar rallied to a 4-3/4 month high on global supply concerns. Sugar prices have underlying support from crop concerns in Thailand, the world's second-largest sugar exporter. Czarnikow Group, on July 26, said th... Read more