Sugar #16 Sep '15 (SDU15)
Sugar #16 Futures Market News and Commentary
May NY world sugar #11 (SBK26) on Friday closed down -0.35 (-2.56%), and Aug London ICE white sugar #5 (SWQ26) closed down -6.00 (-1.43%).
Sugar prices retreated on Friday, with NY sugar falling to a 5.5-year nearest-futures low. Â Friday's 12% plunge in crude oil prices (CLK26) hammered sugar prices. Â Lower crude prices undercut ethanol prices and could prompt global sugar millers to divert more cane crushing toward sugar production, thereby boosting sugar supplies.
Sugar prices also fell on Friday after Iran said the Strait of Hormuz is now reopened, which should restore normal shipping flows and ease global sugar supply concerns.
Sugar prices have been under pressure for the past two weeks amid expectations of abundant global supplies and tepid demand. Â Wednesday's expiration of the May London sugar contract saw 472,650 MT of deliveries to settle the contract, the most for a May contract in 14 years, a sign of tepid sugar demand. Â Â
Higher sugar production... Read more
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