July NY world sugar #11 (SBN24) on Thursday closed up +0.03 (+0.16%), and Aug London ICE white sugar #5 (SWQ24) closed up +2.20 (+0.39%).
Sugar prices recovered from early losses on Thursday and finished slightly higher. Sugar prices initially moved lower Thursday after crude prices (CLM24) fell to a 6-week low, as the weaker crude undercuts ethanol prices and may prompt global sugar mills to divert more cane crushing to sugar production instead of ethanol, thus boosting sugar supplies. However, short-covering in sugar futures emerged Thursday, and sugar prices moved higher after the Brazilian real (^USDBRL) climbed to a 2-1/2 week high against the dollar. Strength in the real discourages export selling from Brazil's sugar producers.
