Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH21) this morning is down -0.30 (-1.82%), and March London white sugar #5 (SWH21) is down -14.80 (-3.17%).
Sugar prices this morning are sharply lower as weakness in the Brazilian real against the dollar sparked long liquidation in sugar futures. The real today is down -0.72% at a 4-session low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
Sugar prices last Thursday rallied to 3-1/2 year nearest-future highs on the outlook for tighter global sugar supplies. Citigroup last Thursday raised its 2021 sugar price estimate to 14.7 cents/lb from 13.6 cents/lb, citing "disappointment in the scale" of the government of India's subsidy for sugar exports.
Smaller sugar output from Thailand, the world's second-largest sugar exporter, is bullish for sugar prices. Monday's data from the Thailand Office of the Cane & Sugar Board showed that Thailand's 2020/21 sugar production from De... Read more