Sugar #11 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Monday closed up +0.29 (+2.01%). Dec London white sugar #5 (SWZ20) closed up +7.20 (+1.82%).
Sugar prices on Monday rallied to 7-3/4 month nearest-futures highs. Sugar prices are moving higher on concern that Brazil's dry conditions may curb sugarcane yields that lowers Brazil's sugar production. Irregular rain in Brazil's sugar-growing areas is keeping soil moisture levels below normal. On Monday, data from Somar Meteorologia showed that rain in southern Brazil was only 9.8 mm in the past week or 33% of the historical average.
Sugar prices have rallied sharply over the past five weeks on concern about future Brazil sugar output. Archer Consulting Sep 29 said that dry weather that sparked fires in Brazil's sugar-cane growing regions could curb Brazil's 2020/21 sugar production by -2.8 MMT. Also, Maxar said that Brazil's sugar-growing regions have only received 5%-25% of average rain in the past few months, leaving crops "extremely dry.... Read more