White Sugar #5 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Monday closed down -0.06 (-0.39%), and Mar London white sugar #5 (SWH21) closed down -1.80 (-0.44%).
Sugar prices on Monday gave up an early advance and closed lower. Sugar prices on Monday initially opened higher on continued dry conditions in Brazil. However, sugar gave up its gains and turned lower on weakness in the Brazilian real, which fell -0.91% to a 1-week low against the dollar on Monday. The weaker real encourages export selling by Brazil's sugar producers.
Sugar prices have trended higher over the past six weeks up to a 9-month high last Tuesday on concern that Brazil's dry conditions may curb sugarcane yields and reduce Brazil's sugar production. Irregular rain in Brazil's sugar-growing areas is keeping soil moisture levels below normal. Maxar recently said that Brazil's sugar-growing regions had received only 5%-25% of average rain in the past few months, leaving crops "extremely dry." Also, a La Nina w... Read more