Sugar #16 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Friday closed down -0.27 (-2.09%), and Oct London white sugar #5 (SWV20) closed down -5.40 (-1.43%).
Sugar prices on Friday posted moderate losses as NY sugar retreated from a 5-month high. A decline in crude oil prices on Friday, along with weakness in the Brazilian real against the dollar, has sparked long liquidation in sugar futures. Crude oil fell more than 1% Friday, which undercuts ethanol prices and is negative for sugar as weakness in ethanol may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies.
Another negative factor for sugar prices is the weakness in the Brazilian real against the dollar. The real on Friday dropped -1.71% to a 3-week low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
Sugar prices have pushed higher over the past two weeks, with NY sugar climbing to a 5-month high ear... Read more