Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH24) on Tuesday closed -0.21 (-0.77%), and March London ICE white sugar #5 (SWH24) closed -7.4 (-0.99%)
Sugar prices on Tuesday posted moderate losses, with NY sugar falling to a 4-week low and London sugar falling to a 1-week low. Increased sugar production in Brazil should alleviate supply concerns and is undercutting prices. 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 Organization (ISO) on Nov 15 to raise its 2023/24 global sugar production (Oct-Sep) estimate to 179.9 MMT from a previous estimate of 174.8 MMT and cut its 2023/24 global sugar deficit to -335,000 MT from a p... Read more