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Barchart
Barchart
Rich Asplund

Sugar Gains on Carryover Support from a Rally in Gasoline Prices

May NY world sugar #11 (SBK24) this morning is up +0.29 (+1.33%), and May London ICE white sugar #5 (SWK24) is up +7.60 (+1.24%).

Sugar prices this morning are moderately higher, with London sugar posting a 2-week high.  Strength in gasoline prices is supporting sugar after gasoline prices (RBJ24) today climbed to a 5-3/4 month high, extending this week's rally to near 20 cents/gallon.  The strength in gasoline prices is bullish for ethanol prices and may prompt the world's sugar mills to divert more cane crushing toward ethanol production instead of sugar, thus reducing sugar supplies.  

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