Sugar #16 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Friday closed down -0.06 (-0.41%). Dec London white sugar #5 (SWZ20) closed down -3.40 (-0.85%).
Sugar prices on Friday moved lower after weakness in the Brazilian real prompted some long liquidation in sugar. The Brazilian real fell -0.47% Friday to a 4-session low against the dollar, which encouraged export selling by Brazil's sugar producers.
On Thursday, NY sugar posted a new 7-3/4 month nearest-futures high, and London sugar on Tuesday posted a 7-3/4 month high. Sugar prices have trended higher over the past five weeks on concern that Brazil's dry conditions may curb sugarcane yields and reduce Brazil's sugar production. Irregular rain in Brazil's sugar-growing areas is keeping soil moisture levels below normal. On Monday, data from Somar Meteorologia showed that rain in southern Brazil was only 9.8 mm in the past week or 33% of the historical average. Maxar recently said that Brazil's sugar-growing regions have only received 5%-2... Read more