White Sugar #5 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Thursday closed up +0.40 (+3.19%), and Oct London white sugar #5 (SWV20) closed up +8.50 (+2.30%).
Sugar prices on Thursday rallied sharply with NY sugar at a new 5-month high on the outlook for a global sugar deficit. StoneX said Thursday that reduced sugar output in Thailand and Europe will push the global 2020/21 sugar market into a deficit of -1.3 MMT.
Sugar prices have pushed higher over the past two weeks on crop concerns in Thailand, along with a rally in crude oil. Crude prices climbed to a 5-month high Wednesday, which benefits ethanol prices and is bullish for sugar since it may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
Crop concerns in Thailand, the world's second-largest sugar exporter, are a major bullish factor for sugar prices. Czarnikow Group, on July 26, said that it projects that Thailand's 2020/21 sugar producti... Read more