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Barchart
Barchart
Rich Asplund

Weak Crude Oil Prices Spark Long Liquidation in Sugar Futures

Oct NY world sugar #11 (SBV23) on Wednesday closed -0.65 (-2.37%), and Dec London white sugar #5 (SWZ23) closed -13.50 (-1.82%).

Sugar prices on Wednesday closed sharply lower after a -1% fall in crude oil prices sparked long liquidation pressures in sugar futures.  Weaker crude prices undercut ethanol prices and may prompt global sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.

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