Sugar #11 Futures Market News and Commentary
May NY world sugar #11 (SBK20) on Wednesday closed up +0.21 (+1.41%), and May London white sugar #5 (SWK20) closed up +5.20 (+1.25%).
Sugar prices closed higher Wednesday on global supply concerns. Thailand's Office of the Cane and Sugar Board reported Wednesday that Thailand's sugar production from Dec 1 through Feb 15 was 7.4 MMT, down -14.0% y/y. A drought in Thailand, the world's fourth-biggest sugar producer, is slashing the country's sugar output. The Thailand Meteorological Department said this year's drought in Thailand is the worst in 40 years. The Thai Sugar Millers Corp said Feb 7 that Thailand's 2019/20 sugar production might drop -35% y/y to 9 MMT from 14 MMT in 2018/19 as dry conditions reduce sugarcane yields.
Sugar prices found support on Tuesday's report by the India Sugar Trade Association (ISMA) that sugar production in India, the world's second-largest sugar producer, dropped sharply by -23% y/y to 16.99 MMT during Oct 1-Feb 15.
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