Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) on Thursday closed down -0.04 (+0.31%) and Dec London white sugar #5 (SWZ19) closed down -2.90 (-0.87%).
Sugar prices erased early gains Thursday and closed lower as a slump in the Brazilian real against the dollar sparked long liquidation in sugar futures. The Brazilian real fell -0.28% Thursday to a 14-month low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
Mar NY sugar on Wednesday rose to a 1-1/4 month high after two U.S. sugar beet producers in Louisiana declared force majeure on sugar deliveries because frost cut its sugar beet production. Reduced U.S. sugar production may force the U.S. to boost its imports of world sugar.
Another bullish factor for sugar was Wednesday's warning from Somar Meteorolgia that the heavy rain forecast this month for Brazil's Center-South could slow the country's ongoing sugar harvest and curb cane crushing.
Another positive for sugar is robust eth... Read more