White Sugar #5 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Thursday closed down -0.24 (-1.99%), and Oct London white sugar #5 (SWV20) closed down -3.10 (-0.88%).
Sugar prices on Thursday settled lower with London sugar at a 1-1/2 week low on a -3% slump in crude oil prices. Lower crude oil prices are negative for 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 overall sugar demand picture is bearish for sugar prices. Czarnikow Group projects that with the closure of restaurants, sports arenas, and cinemas all over the world due to coronavirus lockdowns, global sugar demand will fall this year for the first time in four decades.
Sugar prices extended their losses Thursday on weakness in the Brazilian real against the dollar. The real on Thursday retreated from a 2-week high against the dollar and fell -0.40%. A weaker real encourages export selling by Brazil's sugar produ... Read more