White Sugar #5 Futures Market News and Commentary
March NY world sugar #11 (SBH22) on Friday closed up +0.021 (+1.07%). Dec London white sugar #5 (SWZ21) closed up +7.10 (+1.38%).
Sugar prices on Friday closed higher due to strength in crude oil prices, which rallied to a 7-year high. Stronger crude oil prices benefit ethanol prices and are bullish for sugar since strength in ethanol prices may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production than sugar production, thus reducing sugar supplies.
On Thursday, NY sugar fell to a 2-week low, and London sugar dropped to a 1-week low. Sugar prices are under pressure from signs of stronger sugar output in Brazil. Data from Unica on Wednesday showed Brazil Center-South sugar production in the second half of September at 2.32 MMT, higher than the consensus of 2.22 MMT, as millers crushed 35.8 MMT of sugar-cane, above expectations of 34.0 MMT.
Another negative factor for sugar prices is weakness in the Brazilian real against the dollar.... Read more