White Sugar #5 Futures Market News and Commentary
March NY world sugar #11 (SBH21) on Thursday closed down -0.22 (-1.35%), and March London white sugar #5 (SWH21) closed down -5.70 (-1.25%).
Sugar prices on Thursday dropped to 1-week lows. Weakness in the Brazilian real against the dollar on Thursday sparked long liquidation in sugar futures. The real fell -1.06% to a 1-week low against the dollar Thursday, which encourages export selling by Brazil's sugar producers.
Sugar prices last Thursday rallied to a 3-1/2 year nearest-future high on the outlook for tighter global sugar supplies. Citigroup last Thursday raised its 2021 sugar price estimate to 14.7 cents/lb from 13.6 cents/lb, citing "disappointment in the scale" of the government of India's subsidy for sugar exports.
Smaller sugar output from Thailand, the world's second-largest sugar exporter, is bullish for sugar prices. Monday's data from the Thailand Office of the Cane & Sugar Board showed that Thailand's 2020/21 sugar production... Read more