Sugar #11 Futures Market News and Commentary
July NY world sugar #11 (SBN22) on Wednesday closed down by -7 (-0.35%), and Aug London white sugar #5 (SWQ22) closed up by +7.40 (+1.33%).
Sugar prices Tuesday settled mixed with London sugar climbing to a 1-1/2 month high. Strength in crude prices (CLN22) Wednesday was supportive for sugar. Higher crude prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies. Also, smaller sugar output from Brazil is supportive of prices after Unica reported Brazil 2022/23 Center-South sugar production through May 15 was 2.737 MMT, down -39.8% y/y.
Ramped-up sugar output in India is bearish for prices after data from the Indian Sugar Mills Association (ISMA) reported that India's 2021/22 sugar production during Oct 1-May 15 rose +14.4% y/y to 34.88 MMT.
The outlook for larger sugar crop sizes in India and Thailand is bearish for sugar prices. On April 15, the ISMA... Read more