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Barchart
Barchart
Rich Asplund

EXPLAINED: Sugar prices benefit from surging crude prices | Rare Historical Photos

October NY world sugar #11 (SBV26) on Friday closed up +0.39 (+2.70%), and October London ICE white sugar #5 (SWV26) closed up +15.30 (+3.37%).

Sugar prices settled sharply higher on Friday, with London sugar posting a 1-week high. Soaring crude oil prices on Friday spurred short covering in sugar futures. WTI crude oil (CLQ26) surged more than +4% on Friday at a 1-month high, which benefits ethanol prices and could potentially prompt global sugar mills to divert more cane crushing toward ethanol production than sugar, thus curbing sugar supplies.

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