Sugar #11 Futures Market News and Commentary
October NY world sugar #11 (SBV21) on Monday closed down -0.37 (-1.94%). Dec London white sugar #5 (SWZ21) closed down -1.90 (-0.38%).
Sugar prices on Monday settled moderately lower, with NY sugar posting a 2-week low. Weakness in the Brazilian real against the dollar on Monday undercut sugar prices. The real (^USDBRL) on Monday fell -0.81% to a fresh 1-month low. A weaker real encourages export selling by Brazil's sugar producers.
Monday's data from Unica was bullish for sugar as it showed Center-South Brazil 2021/22 sugar production the first half of Sep fell -20.5% y/y to 2.548 MMT, a bigger decline than expectations of 2.650 MMT. Also, the percentage of cane crushed for ethanol production the first half of Sep rose to 55.06% from 53.85% last year.
NY sugar last month climbed to a 4-1/2 year nearest-futures high, and London sugar posted a 4-1/2 year high last Wednesday, on concerns about the recent damage to Brazil's sugar crops from frost and drought.... Read more