Sugar #11 Futures Market News and Commentary
Jul NY world sugar #11 (SBN20) on Wednesday closed down -0.25 (-2.26%), and Aug London white sugar #5 (SWQ20) closed down -12.40 (-3.29%).
Sugar prices on Wednesday fell back on weak crude prices and on the outlook for an increase in India sugar production. WTI crude oil on Wednesday fell by more than -4%, which undercut ethanol prices and may prompt Brazil's sugar mills to divert more cane-crushing to sugar production rather than ethanol production, thus boosting sugar supplies.
Losses in sugar accelerated Wednesday after the USDA's Foreign Agricultural Service (FAS) projected that India's 2020/21 sugar production will climb +17% y/y to 33.705 MMT. FAS also projected that India's 2020/21 sugar ending stocks will climb +8.8% y/y to 17.419 MMT. India is the world's second-largest sugar producer. India's sugar production is expected to recover in 2020/21 after a decline in 2019/20. The Indian Sugar Mills Association (ISMA) reported last Monday that India 2019/20 Oct-May... Read more