Sugar #11 Futures Market News and Commentary
Jul NY world sugar #11 (SBN20) on Friday closed down -0.05 (-0.46%), and Aug London white sugar #5 (SWQ20) closed up +1.60 (+0.44%).
Sugar prices on Friday settled mixed. NY sugar prices were undercut by weakness in crude oil and the Brazilian real, but London sugar received a boost from weakness in GBP/USD.
Crude oil prices on Friday fell nearly -2%, which was negative for 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. On Thursday, NY sugar climbed to a 1-3/4 month high and London sugar rallied to a 2-1/2 month high after crude oil prices jumped to a 2-1/4 month high.
Concern about weak ethanol demand in Brazil also weighed on sugar prices as the coronavirus pandemic ravages the country's economy. Brazil is the new hotspot for the coronavirus and trails only Russia and the U.S. in confirmed Covid-19 infections. Reduced ethanol demand will encou... Read more