White Sugar #5 Futures Market News and Commentary
Mar NY world sugar #11 (SBH21) on Tuesday closed down -0.11 (-0.73%), and Mar London white sugar #5 (SWH21) closed down -2.90 (-0.70%).
Sugar prices on Tuesday traded with moderate losses the entire day, with London sugar falling to a 1-1/2 week low. The outlook for more sugar supplies from India weighed on prices. Meir Commodities India Pvt on Tuesday projected that India would export 1.5-2.0 MMT of sugar in 2020/21 without any government subsidy since neighboring countries can be expected to purchase Indian sugar rather than Brazilian sugar because of cheaper freight costs.
Sugar mills in India have held back exports as they await news on government subsidies. The World Trade Organization (WTO) is expected to rule on the legality of India's subsidies to its sugar exporters sometime this month after Brazil and Australia raised objections to the WTO about the subsidies. The ruling by the WTO has been delayed from July due to the Covid pandemic.
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