Sugar #16 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) this morning is up +0.10 (+0.79%) and Mar London white sugar #5 (SWH20) is up +2.20 (+0.65%).
Sugar prices are moving higher today on strength in the Brazilian real and on reduced sugar output from India, the world's second-largest sugar producer.
The Brazilian real today is up +0.07% today against the dollar, which sparked short-covering in sugar futures. The Brazilian real on Tuesday slumped to a 4-year low against the dollar, encouraging export selling by Brazil's sugar producers.
Sugar prices are also moving higher after today's data from the Indian Sugar Mills Association (ISMA) showed that India sugar production during Oct 1-Nov 15 plunged -64% yr/yr to 485,000 MT. The ISMA on Nov 5 projected India 2019/20 sugar production will fall -19% y/y to 26.85 MMT.
Mar NY sugar rallied to a 1-1/2 month high last Wednesday due to recent frost conditions in the U.S. that have damaged U.S. sugar beet crops. Marex Spectron on Monday... Read more