Sugar #11 Futures Market News and Commentary
July NY world sugar #11 (SBN22) on Monday closed up by +51 (+2.66%), and Aug London white sugar #5 (SWQ22) closed up by +13.50 (+2.52%).
Sugar prices on Monday rallied sharply for a second session and posted 3-week highs. Strength in crude prices Monday underpinned sugar after WTI crude (CLM22) rose more than +3% to a 1-3/4 month high. Higher crude prices benefit ethanol and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.
Threats of frost in Brazil are also supporting sugar prices. The National Institute of Meteorology in Brazil said Monday that there's a risk of frost in sugarcane growing areas of Brazil until the end of this week.
The outlook for bigger global sugar supplies is negative for prices. Green Pool Commodity Specialists on April 29 shifted its projection for the 2022/23 global sugar market to be in surplus by +1.41 MMT versus a January forecast of a -742,000 MT d... Read more