White Sugar #5 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Wednesday closed down -0.04 (-0.28%). Dec London white sugar #5 (SWZ20) closed down -3.50 (-0.88%).
Sugar prices on Wednesday posted moderate losses as they were weighed down by a slump in crude prices. Crude fell by more than -4% Wednesday, which undercuts ethanol prices and 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 was the action by the Indian Sugar Mills Association (ISMA) on Monday to raise its India 2020/21 sugar production estimate to 31 MMT from a June forecast of 30.5 MMT.
Sugar prices on Monday rallied to 7-3/4 month nearest-futures highs 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... Read more