REPORTS

Sugar prices on Thursday closed lower, with London sugar falling to a 2-week low. Sugar prices were under pressure Thursday after Unica reported Brazil's Center-South sugar production in the second half of May rose to 2.62 MMT, above expectations of  2.52 MMT.  Losses in sugar were limited by Thursday's climb in crude oil prices to a fresh 2-1/2 year high. Higher crude prices are positive for ethanol prices and may prompt Brazil's sugar mills to divert more cane-crushing toward ethanol production rather than sugar production, thus reducing sugar supplies.