Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH23) on Friday closed down -0.22 (-1.13%), and March London white sugar #5 (SWH23) closed down -9.40 (-1.74%).
Sugar prices on Friday posted moderate losses, with NY sugar falling to a 2-week low and London sugar falling to a 1-week low. An increase in sugar output from Brazil weighed on prices Friday after Unica reported that Brazil's Center-South sugar output in the 2022/23 marketing year through mid-November rose +0.3% y/y at 31.966 MMT.
Sugar prices Friday were also undercut from a more than -1% fall in crude oil prices (CLF23). Weaker crude prices undercut ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.
A bearish factor for sugar was Monday's forecast from Czarnikow that Brazil's Center-South mills would produce 34.7 million metric tons of sugar in 2023-24 (Apr/Mar), up +7% y/y and the highest in three years.
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