Sugar #11 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) this morning is up +0.20 (+1.59%), and Oct London white sugar #5 (SWV20) is up +2.00 (+0.54%).
Sugar prices this morning are moving higher on strength in crude oil and the Brazilian real. Crude prices are up +1.0% today, which benefits ethanol price and provides an incentive to Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus reducing sugar supplies.
Strength in the Brazilian real against the dollar also gave sugar prices a boost. The Brazilian real today is up +1.17% against the dollar, which discourages export selling from Brazil's sugar producers.
In a bearish factor, Unica today reported that Brazil's Center-South sugar production in the second half of July rose +37.7% y/y to 3.426 MMT, with the percentage of cane used for sugar climbing to 47.94% in 2020/21 from 36.94% in 2019/20. Also, ethanol demand is weak after Unica also reported that total ethanol sales by Bra... Read more