Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH22) on Friday closed up +0.13 (+0.70%), and March London white sugar #5 (SWH22) closed up +2.20 (+0.45%).
Sugar prices on Friday closed moderately higher on pre-weekend short-covering and position squaring. Sugar prices fell back from their best levels Friday after the Brazilian real (^USDBRL) dropped to a 1-month low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
On Thursday, NY sugar fell to a 3-3/4 month low, and London sugar dropped to a 2-1/2 month low on weakness in crude prices. Sugar prices sank when crude (CLF22) dropped to a 3-1/4 month low Thursday. Weaker crude oil prices undercut ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies.
Sugar prices have been on the defensive since last Wednesday when Unica reported that the total amount of sugarcane crushed in the first... Read more