Sugar Futures on the Rise

2025-12-03 15:44 By Luisa Carvalho 1 min. read

Sugar futures rose toward 15 cents per pound, fueled by speculation that mills in top producer Brazil may shift more cane from sugar to ethanol.

The Sugarcane Industry Union (UNICA) recently said that sugar production in Brazil's key Center-South region grew 8.7% year-on-year to 983,000 tons in the first half of November.

The data also showed the proportion of raw material directed to sweetener production fell by 7.4 pct points, from 46% to 38.6%.

Sugar production in the region is expected to be unchanged from the current crop at 40.8 million tons as mills allocate more cane toward ethanol, but cane production is set to rise to 620 million tons in the 2026-27 season, according to Datagro.

Adding further pressure, European producers are expected to reduce the planted area by 10% for the 2026/27 crop, following a similar drop already observed in the current 2025/26 season.

Meanwhile, India's sugar output between October and November surged by 43% from a year ago to 4.11 million tons.



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