Sugar #11 Futures Market News and Commentary
July NY world sugar #11 (SBN22) on Friday closed up by +53 (+2.84%), and Aug London white sugar #5 (SWQ22) closed up by +14.80 (+2.84%).
Sugar prices Friday posted moderate gains, with London sugar climbing to a 3-week high. Strength in crude prices Friday underpinned sugar after WTI crude (CLM22) rose more than +3% to a 1-week high. Higher crude prices benefit ethanol and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.
Sugar prices Thursday tumbled to 2-1/2 month lows on weakness in the Brazilian real (^USDBRL). The real on Thursday fell to a 2-1/4 month low against the dollar, which sparked selling in sugar. A weaker real encourages export selling by Brazil's sugar producers.
The outlook for bigger global sugar supplies is negative for prices. Green Pool Commodity Specialists on April 29 shifted its projection for the 2022/23 global sugar market to be in surplus by +1.4... Read more