Sugar #11 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Monday closed down -0.18 (-1.53%), and Oct London white sugar #5 (SWV20) closed down -1.60 (-0.47%).
Sugar prices on Monday settled lower for a fourth session, with NY sugar at a 2-week low and London sugar at a 6-week low. Sugar supplies are robust after Unica reported last Thursday that Brazil's Center-South sugar production in the second half of June rose +23.3% y/y to 2.728 MMT, with the percentage of cane used for sugar climbing to 47.42% in 2020/21 from 37.06% in 2019/20. On the bullish side for sugar, however, Unica also reported that total exports of ethanol by Brazil Center-South mills in June rose +44% y/y to 267 mln liters, which indicates pressure for less sugar production and more ethanol production.
The overall sugar demand picture is bearish for sugar prices. Czarnikow Group projects that with the closure of restaurants, sports arenas, and cinemas all over the world due to coronavirus lockdowns, global sugar demand will... Read more