Sugar #16 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Friday closed down -0.08 (-0.68%), and Oct London white sugar #5 (SWV20) closed down -4.20 (-1.21%).
Sugar prices on Friday moved lower for a third day, with NY sugar at a 1-1/2 week low and London sugar at a 6-week low on ample supplies and suspect demand. Sugar supplies are abundant after Unica on Thursday reported that Brazil's Center-South sugar production in the second half of June rose +23.3% y/y to 2.728 MMT, with the percentage of cane used for sugar climbing to 47.42% in 2020/21 from 37.06% in 2019/20. On the positive side, Unica also reported that total exports of ethanol by Brazil Center-South mills in June rose +44% y/y to 267 mln liters, which indicates pressure for less sugar production and more ethanol production.
The overall sugar demand picture is bearish for sugar prices. Czarnikow Group projects that with the closure of restaurants, sports arenas, and cinemas all over the world due to coronavirus lockdowns, global su... Read more