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Barchart
Barchart
Rich Asplund

Sugar Prices Pressured by Dollar Strength and Crude Weakness

March NY world sugar #11 (SBH25) Monday closed down -0.46 (-2.11%), and December London ICE white sugar #5 (SWZ24) closed down -4.80 (-0.86%).

Sugar prices Monday fell to 1-3/4 month lows, pressured by dollar strength and weakness in crude oil.  The dollar index (DXY00) Monday rallied to a 4-1/4 month high, which undercuts most commodity prices, including sugar.  Also, WTI crude oil (CLZ24) Monday fell more than -3% to a 1-1/2 week low, which undercuts ethanol prices and may prompt the world's sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.  

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