Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH24) on Friday closed -0.95 (-3.65%), and March London ICE white sugar #5 (SWH24) closed -20.30 (-2.83%)
Sugar prices on Friday extended this week's sell-off, with NY sugar falling to a 3-month low and London sugar falling to a 2-month low. Increased sugar production in Brazil alleviated supply concerns and sparked fund selling of sugar. On Wednesday, Conab raised its 2023/24 Brazil sugar production estimate by +15% to 46.9 MMT from an August estimate of 40.9 MMT.
Brazil has ramped up its sugar production this year as Unica on Monday reported that Brazil Center-South sugar output in the first half of November rose +30.9% y/y to 2.19 MMT and that sugar output in the 2023/24 crop year through mid-November rose +23.1% y/y to 39.412 MMT. Also, 49.41% of the crushed sugarcane was used for sugar production this year, an increase from 45.97% last year.
Another bearish factor for sugar prices was the action by the International Sugar Organiza... Read more