Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH22) on Wednesday closed up +0.10 (+0.53%). Dec London white sugar #5 (SWZ21) closed up +1.70 (+0.34%).
Sugar prices on Wednesday posted moderate gains as they consolidated this week's losses. NY sugar fell to a 3-week nearest-futures low Tuesday, and London sugar posted a 1-month low Wednesday before recovering. Sugar prices are under pressure after Czarnikow on Monday forecast a 2021/22 global sugar surplus of +350,000 MT, citing Covid lockdowns in Asia that curbed sugar consumption.
Sugar prices were already on the defensive on signs of stronger sugar output in Brazil. Last Wednesday, data from Unica showed Brazil Center-South sugar production in the second half of September at 2.32 MMT, higher than the consensus of 2.22 MMT, as millers crushed 35.8 MMT of sugar-cane, above expectations of 34.0 MMT.
Another negative factor for sugar prices is weakness in the Brazilian real against the dollar. The real (^USDBRL) on Tuesday dropped... Read more