White Sugar #5 Futures Market News and Commentary
May NY world sugar #11 (SBK21) on Friday closed down -0.39 (-2.32%), and May London white sugar #5 (SWK21) closed down -12.90 (-2.76%).
Sugar prices on Friday tumbled to 1-week lows as weakness in crude prices and a slump in the Brazilian real against the dollar sparked long liquidation in sugar futures. Crude oil prices on Friday fell more than -2%, which weighed on ethanol prices, while the Brazilian real on Friday dropped -1.58% to a 3-1/2 month low against the dollar. The weaker real gives incentive for export selling from Brazil's sugar producers.
Sugar prices were undercut Thursday when Green Pool Commodity Specialists projected a 2021/22 global sugar surplus estimate of +4.1 MMT, wider than the projected 2020/21 global sugar surplus of +500,000 MT and the largest surplus in 4 years.
Sugar prices are consolidating below Tuesday's contract and 3-3/4 year nearest-futures highs. Concern about smaller global sugar supplies has fueled rec... Read more