Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Friday closed up +0.05 (+0.34%), and Mar London white sugar #5 (SWH21) closed up +0.60 (+0.15%).
Sugar prices on Friday posted modest gains as they rebounded from Wednesday's 2-week lows. A fall in the dollar index to a 2-3/4 month low on Friday sparked short-covering in sugar futures.
On Wednesday, sugar prices dropped to 2-week lows after Unica reported that Brazil's Center-South sugar production in the first half of November rose +57 y/y to 1.242 MMT, above expectations of 1.120 MMT. The percentage of cane used for sugar rose to 41.74% in 2020/21 from 28.42% in 2019/20.
Another negative factor for sugar is the outlook for more sugar supplies from India. Meir Commodities India Pvt on Tuesday projected that India would export 1.5-2.0 MMT of sugar in 2020/21 without any government subsidy since neighboring countries can be expected to purchase Indian sugar rather than Brazilian sugar because of cheaper freig... Read more