Sugar #11 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Wednesday closed down -0.07 (-0.54%). Dec London white sugar #5 (SWZ20) closed down -0.60 (-0.16%).
Sugar prices on Wednesday closed lower after earlier climbing to 1-month highs. Sugar prices had carry-over support from Tuesday when the U.S. raised Brazil's sugar export quotas to the U.S. by 80,000 MT to 310,000 MT. Another bullish factor for sugar was Tuesday's action by the USDA's Foreign Agricultural Service (FAS) to 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.
Sugar fell back from a 1-month high Wednesday and closed lower on weakness in the Brazilian real, which tumbled -1.72% to a 3-1/2 week low against the dollar. The weaker real encourages export selling by Brazil's sugar producers.
Sugar prices last Monday tumbled to a 1-3/4 month low on the outlook for abundant globa... Read more