Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Friday closed down -0.27 (-1.84%), and Mar London white sugar #5 (SWH21) closed down -6.30 (-1.56%).
Sugar prices on Friday settled lower and held just above Wednesday's 4-week lows. A surge in Brazil sugar exports weighed on prices Friday after Thursday's news that Brazil's Nov sugar exports rose +60% y/y to 3.1 MMT. Sugar prices have been on the defensive this week and posted 4-week lows Wednesday after the India Sugar Mills Association (ISMA) reported that India Oct 1-Nov 30 sugar production surged +107% y/y to 4.29 MMT due to an early start for the crushing season.
Ample sugar production in Brazil is also negative for prices after Unica reported last Wednesday that Brazil's Center-South sugar production in the first half of November rose +57 y/y to 1.242 MMT, above expectations of 1.120 MMT. The percentage of cane used for sugar rose to 41.74% in 2020/21 from 28.42% in 2019/20.
Another bearish factor for... Read more