Sugar prices on Monday closed moderately lower, with London sugar falling to a 5-week low amid weakness in the Brazilian Real, which resulted in lower sugar prices. The Real tumbled to a 4-month low against the dollar.
The fall in crude oil prices on Monday also weighed down on sugar prices as the weakness in crude undercuts ethanol prices. This might prompt sugar mills in major sugar producing countries to divert more cane crushing toward sugar production than ethanol, thus boosting sugar supplies.
Reuters reported that oil prices fell about 2% on Monday to a three-week low amid a higher-priced Brent contract expired, the U.S. dollar strengthened and traders took profits, concerned about rising crude supplies and pressure on demand from high-interest rates.
On its first day, Brent futures for December delivery settled $1.49, or 1.6%, lower at $90.71 a barrel, or down about 5% from where the November contract expired on Friday.
U.S. West Texas Intermediate crude (WTI) fell $1.97, or 2.2%, to settle at $88.82 per barrel.
Yesterday’s closing dated –02/10/2023 –
◾London White Sugar – 701.70s -4.20 (-0.59%)
◾NYBOT Raw Sugar #11 – 26.35s -0.13 (-0.49%)
◾USD/BRL- 5.0637 0.0000 (0.00%)
◾USD/INR – 83.36 (-0.2%)
◾Brent Crude – 89.93 -0.78(-0.86%)
◾BSE Sensex – Closed on account of Gandhi Jayanti
◾NIFTY50 – Closed on account of Gandhi Jayanti
