Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH21) on Friday closed down -0.22 (-1.32%), and March London white sugar #5 (SWH21) closed down -2.70 (-0.58%).
Sugar prices on Friday settled moderately lower as a rally in the dollar index to a 3-1/2 week high and a -2% plunge in crude oil prices sparked long liquidation pressure in sugar futures.
Sugar prices earlier rallied to 3-1/2 year nearest-future highs on Thursday on the outlook for tighter global sugar supplies. Citigroup on Thursday raised its 2021 sugar price estimate to 14.7 cents/lb from 13.6 cents/lb, citing "disappointment in the scale" of the government of India's subsidy for sugar exports.
Recent strength in crude oil prices benefits ethanol prices and is bullish for sugar prices. Higher crude oil prices encourage Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
Smaller sugar output from Thailand,... Read more