March NY world sugar #11 (SBH24) on Tuesday closed -0.53 (-1.91%), and Dec London ICE white sugar #5 (SWZ23) closed -13.00 (-1.72%).
Sugar prices Tuesday retreated and posted 1-1/2 week lows. Comments from the CEO of Raizen, Brazil's top sugar and ethanol company, sparked long liquidation in sugar futures when he said his company would look to boost sugar production due to shrinking margins from producing ethanol. Investment bank BTG Pactual said the cost of making ethanol from corn in Brazil was 16% lower versus producing it from sugarcane, which could boost sugar output as more mills produce ethanol from corn instead of sugar.
