White Sugar #5 Futures Market News and Commentary
July NY world sugar #11 (SBN21) on Friday closed down -0.12 (-0.73%), and Aug London white sugar #5 (SWQ21) closed down -1.60 (-0.38%).
Sugar prices on Friday extended this week's losses, with NY sugar falling to a 1-3/4 month low and London sugar posting a 2-month low. Increased sugar output from India, the world's second-largest sugar producer, is weighing on sugar prices. The Indian Sugar Mills Association on Thursday reported that India's sugar output during Oct 1-Jun 15 rose +13% y/y to 30.7 MMT from 27.1 MMT a year earlier due to a bumper crop and increased cane crushing.
Sugar futures are also on the defensive as the drought in Brazil eases. Somar Meteorologia on Monday reported that rainfall in central Brazil was 15.2 mm last week, or 160% of the historical average. Also, Unica reported last Thursday that Brazil's Center-South sugar production in the second half of May rose to 2.62 MMT, above expectations of 2.52 MMT.
Sugar has support on the rally in c... Read more