White Sugar #5 Futures Market News and Commentary
Mar NY world sugar #11 (SBH20) on Friday closed up +0.10 (+0.76%) and Mar London white sugar #5 (SWH20) closed up +2.20 (+0.64%).
Sugar prices pushed higher Friday with Mar NY sugar at a 9-1/4 month nearest-futures high and Mar London sugar at a 2-month high as global sugar production concerns fueled technical buying by funds. The Indian Sugar Mills Association (ISMA) on Tuesday reported the India's sugar production during Oct 1-Nov 30 fell sharply by -54% y/y to 1.89 MMT. The ISMA on Nov 5 projected India 2019/20 sugar production will fall -19% y/y to 26.85 MMT.
Sugar prices also have support from strength in crude oil prices climbed to a new 2-1/2 month high Friday. Higher crude oil prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
A rally in the Brazilian real to a 3-week high against the dollar Friday is another bullish factor for... Read more