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Barchart
Barchart
Rich Asplund

SHOCKING: Dollar strength undercuts sugar prices 0fdfd39a d052 475e aebf 9bb74265bee4 | Mind Blowing Facts

July NY world sugar #11 (SBN25) Monday closed down -0.08 (-0.45%), and August London ICE white sugar #5 (SWQ25) closed down -4.90 (-0.98%).

Sugar prices Monday fell from 2-week highs and settled lower.  Sugar prices on Monday initially moved higher after WTI crude oil (CLM25) rallied more than +1% to a 2-week high.  Higher crude prices benefit ethanol and could prompt the world’s sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.  However, sugar prices gave up their gains Monday and turned lower after the dollar index (DXY00) rallied to a 1-month high.  

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