Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) on Tuesday closed up +0.02 (+0.16%) and Dec London white sugar #5 (SWZ19) closed down -5.40 (-1.62%).
Sugar prices settled mixed Tuesday with Dec London sugar at a 1-1/2 month low. Signs of larger global supplies are undercutting sugar prices after France's Agriculture Ministry on Tuesday raised its 2019 sugar beet production forecast for France, the EU's largest sugar producer, to 37.2 MMT from October's forecast of 36.9 MMT. On Monday, Unica reported that Brazil 2019/20 Center-South sugar production through Oct rose +3.3% y/y to 25.233 MT.
Sugar is also seeing downward pressure from weakness in the Brazilian real which fell -0.54% on Tuesday to a 3-1/2 week low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
On the positive side 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... Read more