Sugar #11 Futures Market News and Commentary
March NY world sugar #11 (SBH22) on Monday closed down -0.45 (-2.27%). Dec London white sugar #5 (SWZ21) closed down -12.70 (-2.44%).
Sugar prices on Monday fell sharply, with NY sugar falling to 3-week low and London sugar dropping to a 1-1/2 week low. Sugar prices were under pressure Monday after Czarnikow forecast a 2021/22 global sugar surplus of +350,000 MT, citing Covid lockdowns in Asia that curbed sugar consumption.
Sugar prices were already on the defensive on signs of stronger sugar output in Brazil. Last Wednesday, data from Unica 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. The real (^USDBRL) last Wednesday dropped to a 5-3/4 month low against the dollar, which encourages export selling from Brazil's... Read more