White Sugar #5 Futures Market News and Commentary
July NY world sugar #11 (SBN21) on Wednesday closed down -0.01 (-0.06%), and Aug London white sugar #5 (SWQ21) closed down -3.80 (-0.86%).
Sugar prices on Wednesday closed lower, with London sugar falling to a 2-month low. Sugar futures are under pressure on the easing of the drought in Brazil, along with increased sugar production. Somar Meteorologia on Monday reported that rainfall in central Brazil was 15.2 mm last week, or 160% of the historical average. Also, Unica reported last Thursday that Brazil's Center-South sugar production in the second half of May rose to 2.62 MMT, above expectations of 2.52 MMT.
Losses in sugar on Wednesday were limited after crude oil prices rallied to a new 2-1/2 year high. Strength in crude benefits ethanol prices and may prompt Brazil’s sugar mills to divert more cane crushing toward ethanol production rather than sugar production, this reducing sugar supplies.
Sugar prices also have support on strength in the Brazilian real... Read more