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Barchart
Barchart
Rich Asplund

Weakness in Crude Oil Weighs on Sugar Prices

July NY world sugar #11 (SBN25) Tuesday closed down -0.27 (-1.68%), and August London ICE white sugar #5 (SWQ25) closed up +0.50 (+0.11%).

Sugar prices on Tuesday settled mixed, with NY sugar slumping to a 4-year nearest-futures low.  Tuesday's -5% plunge in crude prices (CLQ25) weighed on sugar prices.  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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