Sugar #11 Futures Market News and Commentary
May NY world sugar #11 (SBK20) on Thursday closed up +0.06 (+0.58%), and May London white sugar #5 (SWK20) closed up +9.10 (+2.68%).
Sugar prices on Thursday settled higher with London sugar at a 1-week high. A decline in the dollar index on Thursday to a 1-week low sparked short-covering in sugar futures. NY sugar is consolidating just above last Wednesday's 1-1/2 year low and London sugar above Tuesday's a 4-1/2 month low.
Sugar prices continue to be undercut by concern about weaker sugar demand due to the coronavirus pandemic. Researcher Czarnikow on Mar 24 cut its global sugar consumption estimate for this year by -2.0 MMT, citing a collapse in out-of-home food and drink consumption due to the closure of restaurants because of the coronavirus pandemic. Also, Commerzbank on Thursday cut its NY sugar price estimate for Q4-2020 to 12 cents/lb from a Feb estimate of 15 cents/lb, citing the plunge in crude oil prices and the sell-off in the Brazilian real to a record lo... Read more