White Sugar #5 Futures Market News and Commentary
May NY world sugar #11 (SBK20) on Tuesday closed up +0.01 (+0.07%), and May London white sugar #5 (SWK20) closed down -2.10 (-0.51%).
Sugar prices settled steady to slightly lower on Tuesday. Weakness in crude prices weighed on sugar prices Tuesday after crude oil fell -2.6% on Tuesday to a 2-week 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 saw support Tuesday on a report of reduced sugar output from Thailand, the world's fourth-biggest sugar producer. Thailand's Office of the Cane and Sugar Board on Tuesday reported that Thailand's sugar production from Dec 1 through Feb 23 was down by -8.1% y/y at 7.9 MMT. The Thailand Meteorological Department said this year's drought in Thailand is the worst in 40 years, which is slashing the country's sugar output. The Thai Sugar Millers Corp on Feb 7 foreca... Read more