Sugar #11 Futures Market News and Commentary
May NY world sugar #11 (SBK21) on Thursday closed up +0.52 (+3.28%), and Aug London white sugar #5 (SWQ21) closed up +12.70 (+2.86%).
Sugar prices on Thursday extended Wednesday's gains up to 4-week highs. Fund buying propelled sugar prices higher on concern about reduced global sugar production. Dry conditions may curb sugar yields in Brazil after Somar Meteorologia said that soil moisture in Brazil's sugarcane growing regions has been insufficient to provide good development of cane crops. Also, severe frost in France, the largest sugar producer in the EU, has damaged 10% of France's sugar beet crop, according to farmer group CGB.
NY sugar has support from strength in foreign demand for Brazil's ethanol supplies. Brazil's Trade Ministry reported last Thursday that Brazil's Jan-Mar ethanol exports rose +82% y/y to 548 mln liters, the highest in 5 years for this period. The stronger demand may prompt Brazil's sugar mills to divert more cane crushing... Read more