White Sugar #5 Futures Market News and Commentary
March NY world sugar #11 (SBH21) on Tuesday closed down -0.35 (-2.13%), and March London white sugar #5 (SWH21) closed down -16.30 (-3.49%).
Sugar prices on Tuesday closed sharply lower as weakness in the Brazilian real against the dollar sparked long liquidation pressure in sugar futures. The real on Tuesday tumbled -0.99% to a 4-session low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
Sugar prices last Thursday rallied to a 3-1/2 year nearest-future high on the outlook for tighter global sugar supplies. Citigroup last Thursday raised its 2021 sugar price estimate to 14.7 cents/lb from 13.6 cents/lb, citing "disappointment in the scale" of the government of India's subsidy for sugar exports.
Smaller sugar output from Thailand, the world's second-largest sugar exporter, is bullish for sugar prices. Monday's data from the Thailand Office of the Cane & Sugar Board showed that Thailand's 2020/21 su... Read more