White Sugar #5 Futures Market News and Commentary
March NY world sugar #11 (SBH22) on Friday closed down -0.03 (-0.16%), and March London white sugar #5 (SWH22) closed down -1.90 (-0.37%).
Sugar prices on Friday closed slightly lower. Weakness in crude prices Friday undercut sugar prices. On Thursday, NY sugar had earlier posted a 3-week high, and London sugar posted a 1-1/2 month high after Feb WTI crude (CLG2) surged to a 7-1/4 year high Wednesday. Higher crude prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.
Strength in the Brazilian real (^USDBRL) is also bullish for sugar prices as the real on Thursday rallied to a 3-1/2 month high against the dollar. A stronger real discourages export selling from Brazil's sugar producers.
Reduced sugar output in Brazil is bullish for prices after Unica reported last Wednesday that 2021/22 Center-South sugar production through Dec was 32.029 MMT, down... Read more