Sugar #11 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Thursday closed up +0.27 (+2.10%), and Oct London white sugar #5 (SWV20) closed up +5.30 (+1.41%).
Sugar prices on Thursday rallied sharply for a second day with NY sugar at a 5-1/4 month high and London sugar at a 1-1/2 week high. Increased Chinese demand for Brazilian sugar is giving prices a boost. According to data from researcher Datagro, Brazil, as of August 10, had scheduled the shipment of 816,823 MT of sugar to China in the coming weeks. That is 31% of Brazil's total sugar exports expected to ship in that period. This year through July, Brazil has already exported 1.43 MMT of sugar to China, surpassing the total volume of sugar exported to China in 2019.
Tuesday's data from Unica was negative for sugar prices after Unica reported that Brazil's Center-South sugar production in the second half of July rose +37.7% y/y to 3.426 MMT, with the percentage of cane used for sugar climbing to 47.94% in 2020/21 from 36.94% in 2019/20. Al... Read more