Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) this morning is down -0.38 (-2.53%), and Mar London white sugar #5 (SWH21) is down -9.90 (-2.42%).
Sugar prices this morning tumbled to a 2-week low on larger Brazil sugar output. Unica reported today 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.
Sugar prices were already on the defensive on 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 freight costs.
Sugar mills in India have held back exports as they await news on government subsidies. The World Trade Organization (WTO) is expected to ru... Read more