Sugar #11 Futures Market News and Commentary
October NY world sugar #11 (SBV21) on Thursday closed up +0.16 (+0.83%). Dec London white sugar #5 (SWZ21) closed up +5.20 (+1.02%).
Sugar prices on Thursday posted moderate gains on strength in crude prices. Crude rallied to a 1-1/2 month high Thursday, which benefits ethanol prices and is supportive of sugar. Expectations for smaller Brazil sugar production are also supportive for sugar, with the consensus that Friday's report from Unica will show Brazil Center-South sugarcane crush in the first half of Sep fell -17% y/y to 38.5 MMT.
NY sugar last month climbed to a 4-1/2 year nearest-futures high, and London sugar posted a 4-1/2 year high last 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 suppo... Read more