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Barchart
Barchart
Rich Asplund

The Plunge in Crude Oil Undercuts Sugar Prices

July NY world sugar #11 (SBN25) Monday closed down -0.06 (-0.37%), and August London ICE white sugar #5 (SWQ25) closed down -7.60 (-1.60%).

Sugar prices on Monday gave up an early advance and closed lower after a -7% plunge in crude prices (CLQ25) sparked long liquidation in sugar futures.  Lower crude prices undercut ethanol prices and may prompt the world's sugar mills to divert cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.  

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