Sugar #11 Futures Market News and Commentary
May NY world sugar #11 (SBK20) this morning is down -0.18 (-1.73%), and May London white sugar #5 (SWK20) is down -4.70 (-1.33%).
Sugar prices this morning are weaker with NY sugar at a new 6-1/4 month low on weakness in crude oil and the Brazilian real. Crude oil is modestly lower today and just above last week's 18-year low, which is bearish for ethanol prices and may encourage Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. Ethanol prices are also seeing downward pressure after Brazil's two largest fuel distributors on Monday declared force majeure on purchases of Brazil ethanol due to weak fuel demand.
Overall weakness in the Brazilian real against the dollar is another major bearish factor for sugar prices. The real is down -0.59% today at a 2-week low against the dollar and is just above last Wednesday's record low of 5.2523 reals/USD. A weaker real encourages export selling b... Read more