Sugar #11 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) this morning is up +0.10 (+0.78%). Dec London white sugar #5 (SWZ20) is up +1.50 (+0.40%).
Sugar prices this morning are moving higher with London sugar at a new 1-month high. Concern about the sugar crop in Thailand, the world's second-biggest sugar exporter, is pushing sugar prices higher today. The Thailand Sugar Mills Corp. said today that Thailand 2020/21 sugar production will fall -13% y/y to 7.2 MMT, an 11-year low, as dry weather this year ravaged cane plantations.
Another positive factor for sugar was the action by the U.S. on Tuesday to raise Brazil's sugar export quotas to the U.S. by 80,000 MT to 310,000 MT. Also, the USDA's Foreign Agricultural Service (FAS) on Tuesday cut its Australia 2020/21 sugar production estimate to 4.3 MMT from an April forecast of 4.5 MMT and to cut its Australia 2020/21 sugar export estimate to 3.40 MMT from an April forecast of 3.54 MMT.
A bearish factor for sugar was the action by Rabobank... Read more