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Barchart
Barchart
Rich Asplund

Sugar Prices Recover Early Losses as Dollar Weakness Sparks Short Covering

March NY world sugar #11 (SBH24) on Monday closed +0.22 (+0.82%), and March London ICE white sugar #5 (SWH24) closed +7.60 (+1.03%).

Sugar prices on Monday recovered from early losses and closed moderately higher as a weaker dollar sparked short-covering in sugar futures.  Sugar prices on Monday initially moved lower on increased sugar production in Brazil.  Unica on Monday reported that Brazil Center-South sugar output in the first half of November rose +30.9% y/y to 2.19 MMT and that sugar output in the 2023/24 crop year through mid-November rose +23.1% y/y to 39.412 MMT.  Also, 49.41% of the crushed sugarcane was used for sugar production this year, an increase from 45.97% last year.

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