White Sugar #5 Futures Market News and Commentary
May NY world sugar #11 (SBK20) on Friday closed down -0.06 (-0.42%), and May London white sugar #5 (SWK20) closed down -2.10 (-0.53%).
Sugar prices on Friday extended their week-long slide as NY sugar fell to a 1-1/2 month low, and London sugar slid to a 1-month low. Weakness in crude prices and a slump in the Brazilian real to a new record low Friday weighed on sugar prices. The Brazilian real on Friday fell -0.39% against the dollar and posted a new record low of 4.5138 reals/USD. A weaker real encourages export selling by Brazil's sugar producers. Crude oil prices fell more than 4% Friday to a 14-month low. Lower crude prices are negative for ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies.
Sugar prices on Friday recovered most of their losses after the International Sugar Organization (ISO) raised its global 2019/20 sugar deficit estimate to an 11-ye... Read more