White Sugar #5 Futures Market News and Commentary
Jul NY world sugar #11 (SBN20) on Friday closed up +0.29 (+2.47%) and Aug London white sugar #5 (SWQ20) closed up +8.10 (+2.10%).
Sugar prices on Friday rallied sharply with NY sugar at a 2-1/2 month high and London sugar at a 3-month high. A rally in crude oil on Friday to a 3-month high boosted sugar prices, along with strength in the Brazilian real, which climbed to a 2-1/2 month high against the dollar.
Crude oil prices on Friday surged more than +5% to a 3-month high. Higher crude prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing to ethanol production rather than sugar production, thus reducing sugar supplies.
The Brazilian real on Friday jumped +2.94% against the dollar to a 2-1/2 month high. The stronger real discourages export selling from Brazil's sugar producers and is positive for sugar.
A negative factor for sugar was Wednesday's data from French sugar producer Tereos that total European sugar deman... Read more