Sugar #16 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Friday closed up +0.16 (+1.25%). Dec London white sugar #5 (SWZ20) closed up +2.30 (+0.61%).
Sugar prices on Friday settled moderately higher with London sugar at a new 1-month high. Concern about the sugar crop in Thailand, the world's second-biggest sugar exporter, pushed sugar prices higher on Friday. The Thailand Sugar Mills Corp. said on Friday that Thailand 2020/21 sugar production will fall -13% y/y to an 11-year low of 7.2 MMT as dry weather this year ravaged cane plantations.
Another positive factor for sugar was the action by the U.S. on Tuesday to raise Brazil's sugar export quotas to the U.S. by 80,000 MT to 310,000 MT. Also, the USDA's Foreign Agricultural Service (FAS) on Tuesday cut its Australia 2020/21 sugar production estimate to 4.3 MMT from an April forecast of 4.5 MMT and to cut its Australia 2020/21 sugar export estimate to 3.40 MMT from an April forecast of 3.54 MMT.
A bearish factor for sugar was the acti... Read more