Sugar #16 Jan '24 (SDF24)
Sugar #16 Futures Market News and Commentary
October NY world sugar #11 (SBV26) closed up +0.88 (+5.65%) on Friday, and October London ICE white sugar #5 (SWV26) closed up +16.50 (+3.39%).
Sugar prices extended this week’s sharp rally on Friday, with NY sugar posting a 10-month nearest-futures high and London sugar posting an 11-month high. Concerns over lower global sugar production are propelling prices sharply higher. Due to drought and hot weather in Europe, sugar production in the European Union and the UK is set to decline to 14.98 MMT this year, the lowest level in 11 years, according to data from S&P Global Energy.
Lower sugar output in Brazil is also bullish for sugar prices after Unica reported on Thursday that Brazil Center-South June sugar production fell -26.3% y/y to 3.903 MMT. Brazil is the largest sugar-producing country in the world.
Since posting a 5-month low last Thursday, sugar prices have surged on the outlook for tighter future sugar supplies. On Monday, Covrig Analytics said it now... Read more
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