Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH23) on Monday closed up +0.07 (+0.36%), and March London white sugar #5 (SWH23) closed up +6.20 (+1.16%).
Sugar prices Monday closed moderately higher. Concern about global sugar production gave prices a lift Monday on reports of lower sugar yields in India and heavy rain in Thailand that is delaying its sugar harvest. India is the world's second-largest sugar producer, and Thailand is the third-largest.
Sugar fell back from its best levels Monday on a slump in crude oil. Crude prices Monday (CLF23) fell more than -3%, which undercut ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.
On the negative side, StoneX boosted its global 2022/23 sugar surplus estimate last Thursday to 5.2 MMT from a Sep estimate of 3.9 MMT. StoneX also predicts Brazil's 2023/24 Center South sugar production will climb +5.2% y/y to 35.6 MMT.
Increas... Read more