Sugar #11 Futures Market News and Commentary
May NY world sugar #11 (SBK21) on Wednesday closed up +0.43 (+2.79%), and May London white sugar #5 (SWK21) closed up +17.40 (+4.10%).
Sugar prices on Wednesday closed sharply higher, with NY sugar at a 3-1/2 week high and London sugar at a 2-1/2 week high. A +4% rally in crude oil prices on Wednesday to a 4-week high benefited ethanol prices and was bullish for sugar. The strength in crude oil prices may encourage Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus reducing sugar supplies.
Sugar prices were already in rally mode on concern about smaller sugar supplies from France, the largest sugar producer in the EU. A severe frost in France has damaged 10% of France's sugar beet crop, according to farmer group CGB.
Sugar prices have been under pressure recently on concern the resurgence of the pandemic will keep pandemic restrictions in place that crimp fuel demand and encoura... Read more