Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH23) on Friday closed up +0.28 (+1.35%), and March London white sugar #5 (SWH23) closed up +7.40 (+1.33%).
Sugar prices Friday extended this week's rally to 1-month highs. Sugar has climbed this week on speculation that smaller sugar output in India will dissuade the government from allowing additional sugar exports. India's National Federation of Cooperative Sugar Factories projects that India's 2022/23 sugar production will fall -4.5% y/y to 34.3 MMT. India's Food Secretary Chopra said last Thursday that India would assess domestic demand before deciding whether to allow more sugar exports next month. India is the world's second-largest sugar exporter.
Sugar prices also have support from Tuesday when Brazil's state-owned oil company Petrobras raised gasoline prices by more than +7% to distributors. Strength in gasoline is supportive of ethanol prices, and higher ethanol prices may prompt Brazil's sugar mills to boost ethanol produc... Read more