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Barchart
Barchart
Rich Asplund

Strength in Crude Oil Supports Sugar Prices

May NY world sugar #11 (SBK26) on Tuesday closed up +0.26 (+1.83%), and May London ICE white sugar #5 (SWK26) closed up +12.30 (+2.97%).

Sugar prices moved higher on Tuesday, with London sugar posting a 1-week high as higher crude oil prices encourage the world's sugar mills to boost ethanol production at the expense of sugar.   WTI crude (CLJ26) rose by more than +2% on Tuesday, boosting ethanol prices and potentially prompting the world's sugar mills to divert more cane crushing toward sugar production rather than ethanol, thereby boosting sugar supplies.  

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