Sugar #11 Futures Market News and Commentary
October NY world sugar #11 (SBV21) on Thursday closed down -0.03 (-0.15%). Dec London white sugar #5 (SWZ21) closed down -1.60 (-0.31%).
Sugar prices on Thursday posted modest losses. Signs of weaker physical demand for sugar weighed on prices Thursday after 2,496 contracts of Oct London sugar were used to settle delivery of the expiring Oct London 2021 white sugar #5 contract, far below the 6,908 contracts needed to settle delivery on the Oct 2020 contract last year.
Since April, sugar prices rallied steadily, with NY sugar climbing to a 4-1/2 year nearest-futures high last month and London sugar posting a 4-1/2 year high Wednesday on concerns about the recent damage to Brazil's sugar crops from frost and drought. The International Sugar Organization (ISO) on Aug 27 raised its global 2021/22 sugar deficit estimate to -3.83 MMT from a May estimate of -2.65 MMT after frost in July damaged Brazil's sugar crops.
Sugar prices also have support from dry conditions... Read more