Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH24) on Monday closed -0.13 (-0.49%), and Dec London white sugar #5 (SWZ23) closed -4.20 (-0.59%).
Sugar prices Monday closed moderately lower, with London sugar falling to a 5-week low. Weakness in the Brazilian real (^USDBRL) is bearish for sugar prices after the real on Monday tumbled to a 4-month low against the dollar. The weaker real encourages export selling from Brazil's sugar producers. Also, Monday's -2% fall in crude prices (CLX23) was bearish for sugar as the weakness in crude undercuts ethanol prices and may prompt the world's sugar mills to divert more cane crushing toward sugar production than ethanol, thus boosting sugar supplies.
Sugar has been under pressure over the past week on signs of ramped-up sugar production in Brazil. Last Tuesday, Unica reported that Brazil Center-South sugar output in the first half of September rose +8.5% y/y to 3.116 MMT and that sugar output in the 2023/24 crop year through mid-September ro... Read more