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Barchart
Barchart
Rich Asplund

Sugar Prices Surge on Global Supply Worries

May NY world sugar #11 (SBK23) on Thursday closed up +0.66 (+2.88%), and May London white sugar #5 (SWK23) closed up +9.30 (+1.40%).

Sugar prices Thursday extended Wednesday's sharp rally, with NY sugar posting a 6-1/2 year nearest-futures high and London sugar posting an 11-year high.  Fund buying pushed sugar futures higher Thursday on signs of even tighter global supplies after India's Food Secretary said India might not allow additional sugar exports this year due to lower-than-expected sugar production.  Sugar prices were already in rally mode from Wednesday when the Indian Sugar Mills Association (ISMA) reported India's Oct-Mar sugar production fell -3.3% y/y to 29.96 MMT.  India is the world's second-largest sugar producer.

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