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Barchart
Barchart
Rich Asplund

Sugar Prices Rally on Strength in Crude Oil Prices

October NY world sugar #11 (SBV25) on Friday closed up +0.31 (+1.91%), and August London ICE white sugar #5 (SWQ25) closed up +1.20 (+0.25%).

Sugar prices were boosted by Friday's sharp rally of more than +2% in crude oil prices (CLQ25), which was due to speculation that President Trump may soon announce new sanctions involving Russian oil exports.  Higher crude prices benefit ethanol prices and may prompt the world's sugar mills to divert more cane crushing to ethanol production rather than sugar, thus curbing sugar supplies.  

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