White Sugar #5 Futures Market News and Commentary
May NY world sugar #11 (SBK21) on Friday closed up +0.14 (+0.86%), and May London white sugar #5 (SWK21) closed up +1.50 (+0.32%).
Sugar prices on Friday settled moderately higher on strength in crude oil prices. Crude prices on Friday rallied by more than +3% to a 1-3/4 year high. Higher crude prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing to ethanol production rather than sugar production, thus reducing sugar supplies.
Sugar prices on Thursday fell to a 2-week low on a surge in sugar production in India. Data on Wednesday from India's Sugar Mills Association showed that India's Oct-Feb sugar production rose +20% y/y to 23.38 MMT. Weakness in the Brazilian real on Wednesday was another negative factor for sugar prices as the real fell to a 4-month low against the dollar on Wednesday. The weaker real provides incentive for export selling by Brazil's sugar producers.
Sugar prices have corre... Read more