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Barchart
Barchart
Rich Asplund

Brazilian Real Strength Spurs Short Covering in Sugar

October NY world sugar #11 (SBV26) closed up +0.12 (+0.69%) on Monday, and December London ICE white sugar #5 (SWZ26) closed down -1.30 (-0.26%).

Sugar prices fell to 3.5-week lows on Monday but recovered and settled mixed. Short covering emerged in sugar futures on Monday after the Brazilian real (^USDBRL) rallied to a 1-week high against the dollar. The stronger real discourages export sales from Brazil’s sugar producers.

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