White Sugar #5 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Wednesday closed up +0.09 (+0.62%), and Mar London white sugar #5 (SWH21) closed up +2.30 (+0.58%).
Sugar prices on Wednesday recovered from 3-1/2 week lows and posted moderate gains. Strength in crude oil prices on Wednesday sparked some short-covering in sugar futures. Crude prices rose more than +1% Wednesday, which benefits ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
Sugar prices on Wednesday initially dropped to 3-1/2 week lows on increased sugar output from India after the India Sugar Mills Association (ISMA) reported that India Oct 1-Nov 30 sugar production surged +107% y/y to 4.29 MMT due to an early start of the crushing season.
Ample sugar production in Brazil is negative for prices after Unica reported last Wednesday that Brazil's Center-South sugar production in the first ha... Read more