White Sugar #5 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) on Monday closed down -0.18 (-1.25%) and Mar London white sugar #5 (SWH20) closed down -6.00 (-1.50%).
Sugar prices moved lower Monday with NY sugar at a 2-week low and London sugar at a 1-week low. Sugar prices were undercut by a plunge in crude prices, weakness in the Brazilian real, and general weakness in commodity prices due to the spreading Chinese coronavirus.
Mar WTI crude oil on Monday fell -2.0% to a 3-1/2 month low. Weaker crude prices undercut ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing to sugar production rather than ethanol production, thus boosting sugar supplies.
The Brazilian real dropped -0.60% Monday and posted a 1-3/4 month low against the dollar. The weaker real encourages export selling by Brazil's sugar producers.
A positive for sugar prices was Monday's data from Unica that showed Brazil's Center-South sugar production in the first half of January plunged -66.0% y/y... Read more