Sugar #11 Futures Market News and Commentary
July NY world sugar #11 (SBN21) on Monday closed up +0.35 (+2.13%), and Aug London white sugar #5 (SWQ21) closed up +2.30 (+0.54%).
Sugar prices on Monday recovered from early losses and posted moderate gains on dry conditions in Brazil. Somar Meteorologia on Monday reported that there was scant rainfall in central Brazil last week. Sugar prices also saw strength on higher crude oil prices and a higher Brazilian real.
Sugar prices Monday morning initially moved lower, with NY sugar posting a 2-month low and London sugar falling to a 2-1/4 month low. Increased sugar output from India, the world's second-largest sugar producer, weighed on sugar prices. The Indian Sugar Mills Association last Thursday reported that India's sugar output during Oct 1-Jun 15 rose +13% y/y to 30.7 MMT from 27.1 MMT a year earlier due to a bumper crop and increased cane crushing.
Sugar found support from Monday's rally in crude oil prices to a new 2-1/2 year high. Strength in crude oi... Read more