Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH21) on Friday closed down -0.18 (-1.12%), and March London white sugar #5 (SWH21) closed down -5.50 (-1.22%).
Sugar prices on Friday extended Thursday's losses down to new 1-week lows. Forecasts for rain in Brazil's Center-South, the country's biggest sugar-growing region, are weighing on prices. Maxar said Friday that above-average rain is expected for the Center-South through next week, which should benefit sugarcane yields. Weakness in the Brazilian real against the dollar on Friday also weighed on sugar prices. The real tumbled -2.05% to a 1-1/2 week low against the dollar Friday, which encourages export selling by Brazil's sugar producers.
Sugar prices last Thursday rallied to a 3-1/2 year nearest-future high on the outlook for tighter global sugar supplies. Citigroup last Thursday raised its 2021 sugar price estimate to 14.7 cents/lb from 13.6 cents/lb, citing "disappointment in the scale" of the government of India's... Read more