White Sugar #5 Futures Market News and Commentary
July NY world sugar #11 (SBN22) on Thursday closed down by -6 (-0.30%), and Aug London white sugar #5 (SWQ22) closed down by -2.20 (-0.40%).
Sugar prices Thursday posted moderate losses. Ramped-up sugar output in India is weighing on prices after data from the Indian Sugar Mills Association (ISMA) reported that India's 2021/22 sugar production during Oct 1-May 15 rose +14.4% y/y to 34.88 MMT. Also, reduced frost risks in Brazil weighed on sugar after Climatempo said Wednesday that winds and clouds in southern Brazil prevented a severe drop in temperatures that removed the threat of frost from developing.
Sugar prices Thursday recovered most of their losses after crude prices (CLM22) rallied more than +2%. Strength in crude oil benefits ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.
The outlook for bigger global sugar supplies is negative for prices. Gree... Read more