Sugar #11 Mar '20 (SBH20)
Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) on Wednesday closed up +0.26 (+2.07%) and Dec London white sugar #5 (SWZ19) closed up +6.80 (+2.08%).
Sugar prices moved higher Wednesday with Mar NY sugar at a 1-1/4 month high after two U.S. sugar beet producers in Louisiana declared force majeure on sugar deliveries because frost cut its sugar beet production. Reduced U.S. sugar production may force the U.S. to boost its imports of world sugar.
Another bullish factor for sugar was Wednesday's warning from Somar Meteorolgia that the heavy rain forecast this month for Brazil's Center-South could slow the country's ongoing sugar harvest and curb cane crushing.
Another positive for sugar is robust ethanol demand in Brazil after Unica reported Monday that Brazil Center-South sugar mills sold 2.1 billion liters of hydrous ethanol in Oct, up 5.0% y/y and a record for a single month. The record sales of ethanol may prompt Brazil's sugar mills to divert more cane crushing toward ethanol... Read more