Sugar #16 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) on Wednesday closed down -0.04 (-0.20%) and Mar London white sugar #5 (SWH20) closed down -0.60 (-0.17%).
Sugar prices fell back from 9-1/2 month highs Wednesday as funds took profits following this week's sharp rally. Sugar prices have moved steadily higher over the past seven weeks on the outlook for smaller global supplies.
Strength in the Brazilian real is supportive for sugar prices as the Brazilian real rose +0.40% Wednesday to a 1-month high against the dollar. A stronger real discourages export selling from Brazil's sugar producers.
Tuesday's data from Unica showed Brazil Center-South sugar production in the second-half of Nov tumbled -36.7% y/y to 337,000 MT as ethanol output the second-half of Nov rose +2.9% y/y to 770 million liters. However, total Brazil Center-South 2019/20 sugar output through Nov was mildly higher by +2.22% y/y at 26.409 MMT.
Tuesday's WASDE report was bullish for sugar as the USDA cut its tot... Read more