White Sugar #5 Futures Market News and Commentary
Oct NY world sugar #11 (SBV20) on Wednesday closed up +0.10 (+0.78%), and Oct London white sugar #5 (SWV20) closed up +3.30 (+0.89%).
Sugar prices on Wednesday followed crude oil prices higher. Crude prices rose more than +2% Wednesday, which benefits ethanol prices and gives incentive to Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
Tuesday's data from Unica was negative for sugar prices after Unica reported that Brazil's Center-South sugar production in the second half of July rose +37.7% y/y to 3.426 MMT, with the percentage of cane used for sugar climbing to 47.94% in 2020/21 from 36.94% in 2019/20. Also, ethanol demand is weak after Unica also reported that total ethanol sales by Brazil Center-South mills in the first half of July fell -19% y/y to 741.4 mln liters, which indicates pressure for less ethanol production and more sugar production.
A negative factor for suga... Read more