Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Thursday closed down -0.49 (-3.29%). Dec London white sugar #5 (SWZ20) closed down -10.00 (-2.52%).
Sugar prices on Thursday sold off sharply, with NY sugar at a 1-week low and London sugar at a 2-week low. A plunge in crude oil prices Thursday, along with weakness in the Brazilian real against the dollar, undercut sugar prices. Crude oil fell by more than -3% Wednesday to a 4-1/2 month low, which undercuts ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. The Brazilian real slid -0.26% against the dollar Thursday and is just above Wednesday's 5-1/4 month low against the dollar. The weaker real encourages export selling by Brazil's sugar producers.
NY sugar on Tuesday earlier rallied to an 8-month nearest-futures high, and London sugar rallied to a 1-week high that was just below last Tuesday's 8-month high. Sugar prices... Read more