Sugar #11 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Thursday closed up +0.02 (+0.16%). Dec London white sugar #5 (SWZ20) closed up +3.00 (+0.81%).
Sugar prices on Thursday closed slightly higher as they consolidated just below Wednesday's 1-month highs. Sugar prices had carry-over support from Tuesday when the U.S. raised Brazil's sugar export quotas to the U.S. by 80,000 MT to 310,000 MT. Another bullish factor for sugar was Tuesday's action by the USDA's Foreign Agricultural Service (FAS) to cut its Australia 2020/21 sugar production estimate to 4.3 MMT from an April forecast of 4.5 MMT and to cut its Australia 2020/21 sugar export estimate to 3.40 MMT from an April forecast of 3.54 MMT.
A bearish factor for sugar was the action by Rabobank on Thursday to cut its global 2019/20 sugar deficit estimate to -1.0 MMT from a previous estimate of -4.3 MMT, citing a strong Brazil sugar harvest and an estimated -1.5% y/y drop in global sugar demand due to the Covid pandemic. Rabobank also said... Read more