Sugar #11 Futures Market News and Commentary
October NY world sugar #11 (SBV22) on Friday closed down -0.43 (-2.32%), and Aug London white sugar #5 (SWQ22) closed down -7.20 (-1.29%).
Sugar prices Friday posted moderate losses, with NY sugar falling to a 4-month low. Sugar prices were under pressure Friday from weakness in the Brazilian real (^USDBRL), which fell to a 4-3/4 month low against the dollar. The weaker real encourages export selling by Brazil's sugar producers.
The outlook for larger sugar crop sizes in India and Thailand is bearish for sugar prices. On April 15, the ISMA raised India's 2021/22 sugar production estimate to 35 MMT from 33.3 MMT, up +12.2% y/y, and said sugar exports would jump to a record 9 MMT. India is the world's second-largest sugar producer. The Indian Sugar Mills Association (ISMA) recently reported that India's 2021/22 sugar production from Oct 1-May 15 rose +14.4% y/y to 34.88 MMT. Meanwhile, Thailand's Office of the Cane & Sugar Board estimated that Thailand would export... Read more