White Sugar #5 Aug '24 (SWQ24)
White Sugar #5 Futures Market News and Commentary
October NY world sugar #11 (SBV26) on Wednesday closed down -0.31 (-1.85%), and October London ICE white sugar #5 (SWV26) closed down -4.40 (-0.86%).
NY and London sugar prices on Wednesday rallied to new 1.25-year nearest-futures highs, but then fell back due to some long liquidation pressure.
The recent rally was sparked by concern about a weather-related decline in global sugar production. Due to drought and hot weather in Europe, sugar production in the European Union and the UK is set to decline to 14.98 MMT this year, the lowest level in 11 years, according to data from S&P Global Energy.
Lower sugar output in Brazil is also bullish for sugar prices after Unica reported last Thursday that Brazil Center-South June sugar production fell -26.3% y/y to 3.903 MMT. Brazil is the largest sugar-producing country in the world.
Sugar prices in August have surged due to the outlook for tighter future sugar supplies. Last Monday, Covrig Analytics said it now exp... Read more
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