Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Thursday closed up +0.28 (+1.93%). Dec London white sugar #5 (SWZ20) closed up +5.70 (+1.45%).
Sugar prices on Thursday rallied, with NY sugar posting a new 7-3/4 month nearest-futures high. Sugar prices have trended higher over the past five weeks on concern that Brazil's dry conditions may curb sugarcane yields and reduce Brazil's sugar production. Irregular rain in Brazil's sugar-growing areas is keeping soil moisture levels below normal. On Monday, data from Somar Meteorologia showed that rain in southern Brazil was only 9.8 mm in the past week or 33% of the historical average. Maxar recently said that Brazil's sugar-growing regions have only received 5%-25% of average rain in the past few months, leaving crops "extremely dry." Also, a La Nina weather pattern could lead to prolonged excessive dryness in Brazil that cuts sugarcane yields.
Fund buying is supporting the recent up-move in sugar prices. Last Friday's weekly Commitment o... Read more