Sugar #16 Futures Market News and Commentary
July NY world sugar #11 (SBN21) on Friday closed down -0.12 (-0.68%), and Aug London white sugar #5 (SWQ21) closed -3.40 (-0.75%).
Sugar prices on Friday closed moderately lower with London sugar falling to a new 2-1/2 week low. Sugar prices saw continued downward pressure after Unica reported that Brazil's Center-South sugar production in the second half of May rose to 2.62 MMT, above expectations of 2.52 MMT.
Sugar prices were undercut by Friday's -1.22% sell-off in the Brazilian real (^USDBRL), which fell back from Monday's 6-month high. The weaker real encourages export selling by Brazil's sugar producers.
Sugar prices have support from last Friday's projections by the International Sugar Organization (ISO) for the global 2021/22 sugar market to show a deficit of -2.7 MMT, a slight improvement from the -3.1 MMT global sugar deficit seen for 2020/21.
Drought concerns in Brazil are a major bullish factor for sugar prices. The National Weather System (NWS... Read more