Sugar #11 Futures Market News and Commentary
May NY world sugar #11 (SBK21) this morning is up +0.21 (+1.37%), and May London white sugar #5 (SWK21) is up +6.50 (+1.55%).
Sugar prices this morning are moderately higher, with London sugar climbing to a 1-1/2 week high. Concern about smaller sugar supplies from France, the largest sugar producer in the EU, is bullish for prices. A severe frost in France has damaged 10% of France's sugar beet crop, according to farmer group CGB.
A +1% rally in crude oil prices today is benefitting ethanol prices and is supportive for sugar. Strength in ethanol may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus reducing sugar supplies.
Sugar prices have been under pressure recently on concern the resurgence of the pandemic will keep pandemic restrictions in place that crimp fuel demand and encourage Brazil's sugar mills to divert more cane crushing toward sugar production rather than... Read more