Sugar Commodity Price
Sugar No. 11 Futures End of Day Settlement Price
Sugar Commodity News
Latest Global Financial News Impacting Sugar Prices
Unique News Catalysts:
Australia; Brazil; Canada; China; Colombia; Costa Rica; El Salvador; European Union; Honduras; Indonesia; Japan; Panama; Russian Federation; Thailand; United State vs India's Sugar Subsidies: Any change in WTO trade dispute status supports the global price of sugar. This news catalyst increases the possibility of removal of India sugar subsidies. If removed, India sugar stockpiles could fall thus decreasing global supply.
- 7/12/19 - A change in WTO trade dispute status from Consultations to Probe
- 7/22/19 - India blocks requests from Australia, Brazil and Guatemala for WTO dispute panels.
- 8/13/19 - Brazil, Australia and Guatemala have complained again to the WTO to establish dispute panels to rule on India’s sugar subsidies.
- 10/16/19 - On 16 October 2019, Guatemala requested the Director-General to compose the panel. On 28 October 2019, the Director-General composed the panel.
Brazil vs China's Sugar Tariffs:
- 5/21/19 - The Chinese government has stated that they will not renew 2017 import tariffs of 45% on sugar from Brazil set to expire in May 2020. If dropped, Brazil sugar exports could rise thus decreasing global supply.
Ethanol Demand:
- 7/17/19 - India to work with Brazil on ethanol production.
- 7/23/19 - 32M sugarcane could be used to produce ethanol and electricity instead of sugar in the next year.
India Supply Curb:
- 11/5/19 - Maharashtra and Karnataka sugarcane acreage expected to be reduced by 12% as a result of damaged crops from drought and flooding conditions.
Sugar Commodity Correlations
Asset Correlations That Move With The Price of Sugar
Unique Correlations:
Sugar and Brazil Relationship: Since Brazil is the leading producer of sugarcane in the world, the value of the Brazilian Real plays a significant role in the price of sugar futures. A weaker real is bearish for sugar since it encourages export selling by Brazil's sugar producers.
- 4/26/20 - Small divergence between Brazil stock market & sugar correlation. However, any rise in Brazilian equities / currency will help support the price of sugar.
Daily Chart: SGG vs BRZU
Weekly Chart: SGG vs BRZU
Sugar and India Relationship: Since India is the second leading producer of sugarcane in the world, yielding approximately 33 million metric tons of sugar in 2018/2019 season. The value of the Indian Rupee now plays a role in the price of sugar futures. Weakness in the Indian Rupee against the US Dollar encourages India's sugar producers to boost exports.
- 4/26/20 - Large divergence between India stock market & sugar correlation—suggesting a rise in sugar prices over a collapse in Indian equities/currency for mean reversion.
Daily Chart: SGG vs INDL
Weekly Chart: SGG vs INDL
Sugar and Crude Oil/Gasoline Relationship: One of the key features of the sugar market is
its strong linkage with energy markets, mainly because sugar crops can also be processed into ethanol. Higher crude oil prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production.
- 04/26/20 - Small divergence between crude oil / gasoline and sugar correlation. However, any rise in Crude Oil and Gasoline will help support the price of sugar.
Daily Chart: SGG vs USO
Weekly Chart: SGG vs USO
Sugar and Silver Relationship: Long-term Commodity Correlation
- 4/26/20 - Large divergence between silver & sugar correlation—suggesting a rise in sugar prices and pullback in silver prices for mean reversion.
Daily Chart: SGG vs SLV
Weekly Chart: SGG vs SLV