White Sugar #5 Futures Market News and Commentary
October NY world sugar #11 (SBV21) on Monday closed down -0.32 (-1.67%). Dec London white sugar #5 (SWZ21) closed down -6.90 (-1.37%).
Sugar prices on Monday posted moderate losses. Weakness in crude prices on Monday weighed on sugar futures. Crude prices tumbled -2% on Monday to a 1-week low, which undercuts ethanol prices and is bearish for sugar. Also, forecasts for rain in Brazil put pressure on sugar prices after Somar Meteorologia forecast heavy rain for later this week for Brazil.
Since April, sugar prices rallied steadily, with NY sugar climbing to a 4-1/2 year nearest-futures high last month and London sugar posting a 4-1/2 year high last Wednesday on concerns about the recent damage to Brazil's sugar crops from frost and drought. The International Sugar Organization (ISO) on Aug 27 raised its global 2021/22 sugar deficit estimate to -3.83 MMT from a May estimate of -2.65 MMT after frost in July damaged Brazil's sugar crops.
Sugar prices also have sup... Read more