White Sugar #5 Futures Market News and Commentary
October NY world sugar #11 (SBV21) on Wednesday closed down -0.05 (-0.28%), and Oct London white sugar #5 (SWV21) closed down -2.30 (-0.51%).
Sugar prices on Wednesday gave up an early advance and closed modestly lower as weakness in crude oil weighed on sugar. WTI crude oil tumbled more than -3% Wednesday to a 2-week low, which undercut 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 Wednesday morning initially opened higher on positive carry-over from Tuesday when Wilmar International said that frost and drought damage this year would cut Brazil's 2021/22 sugar production to 28 MMT, down -27% y/y and the lowest output in at least a decade. Wilmar also warned that Brazil's 2022/23 sugar cane crop might not recover due to this year's drought and frost that damaged cane plants.
NY sugar prices last Thursday rallied to a 5-month neare... Read more