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Barchart
Barchart
Rich Asplund

Crude Oil Weakness Spurs a Slump in Sugar Prices

October NY world sugar #11 (SBV26) on Friday closed down -0.24 (-1.59%), and Aug London ICE white sugar #5 (SWQ26) closed down -11.50 (-2.40%).

Sugar prices fell sharply on Friday, with London sugar posting a 1.5-week low. Friday’s -1% fall in crude oil prices (CLQ26) weighed on sugar prices. Lower crude oil prices undercut ethanol prices and could persuade global sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.

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