March NY world sugar #11 (SBH25) Wednesday closed down -0.82 (-3.59%), and December London ICE white sugar #5 (SWZ24) closed down -14.10 (-2.44%).
Sugar prices Wednesday retreated from 1-week highs and sold off sharply. Forecasts for rain in Brazil eased drought concerns and sparked long liquidation in sugar futures. Meteorologist Climatempo forecasted heavy rainfall for Brazil's Center-South, the country's largest sugar-producing region, starting this weekend. Losses in sugar accelerated Wednesday after the Brazilian real (^USDBRL) tumbled to a 2-1/4 month low against the dollar. The weaker real encourages export selling by Brazil's sugar producers.
