White Sugar #5 Futures Market News and Commentary
Jul NY world sugar #11 (SBN20) on Tuesday closed up +0.22 (+2.00%) and Aug London white sugar #5 (SWQ20) closed up +5.20 (+1.43%).
Sugar prices on Tuesday moved higher with NY sugar at a 1-1/2 week high due to a rally in crude prices and strength in the Brazilian real. WTI crude climbed more than +3% Tuesday to a 3-month high, which benefits 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.
Strength in the Brazilian real against the dollar is supportive for sugar prices as the real on Tuesday rose sharply by +2.73% to a 1-1/2 month high against the dollar. The stronger real discourages export selling by Brazil's sugar producers.
In a bearish factor, the Indian Sugar Mills Association (ISMA) on Tuesday raised its India 2019/20 sugar production estimate to 27 MMT from a previous forecast of 26.5 MMT. ISMA also reported that India's 2019/20 Oct-May sugar... Read more