Sugar Futures Ease from 5-Month Peak

2026-03-23 15:45 By Luisa Carvalho 1 min. read

Sugar futures in the US traded around 15.5 US cents, easing from five-month highs of 15.7 US cents scaled in March 20, influenced by movements in international oil prices and geopolitical factors.

President Trump's move to postpone any strikes against Iran power plants by five days raised hopes for a potential de-escalation in the Middle East conflict, pushing oil prices sharply lower.

Falling energy prices could encourage cane mills in top growers Brazil and India to produce more sugar and less ethanol.

Adding pressure, Indian sugar mills have resumed exports after a brief slowdown, signing deals for 100,000 metric tons in a week as the weaker rupee and higher global prices made overseas sales profitable.

Industry officials said shipments from India, the world’s second-largest sugar producer, will help buyers in Asia and Africa secure supplies at relatively lower prices.



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Sugar Futures Ease from 5-Month Peak
Sugar futures in the US traded around 15.5 US cents, easing from five-month highs of 15.7 US cents scaled in March 20, influenced by movements in international oil prices and geopolitical factors. President Trump's move to postpone any strikes against Iran power plants by five days raised hopes for a potential de-escalation in the Middle East conflict, pushing oil prices sharply lower. Falling energy prices could encourage cane mills in top growers Brazil and India to produce more sugar and less ethanol. Adding pressure, Indian sugar mills have resumed exports after a brief slowdown, signing deals for 100,000 metric tons in a week as the weaker rupee and higher global prices made overseas sales profitable. Industry officials said shipments from India, the world’s second-largest sugar producer, will help buyers in Asia and Africa secure supplies at relatively lower prices.
2026-03-23
Sugar Futures Rise to 5-Month High
Sugar futures in the US rose further to surpass 15.4 cents per pound, the highest since October 2025, as the market remains sensitive to oil price movements. Higher oil prices amid the Middle East crisis make ethanol production more attractive, prompting mills to divert more sugarcane to biofuel at the expense of sugar output. Ethanol production in top producer Brazil is forecast to rise by some 4 billion liters in the 2026/27 season from a year earlier, which would set a record level, according to industry sources. Meanwhile, abundant supply prospects, primarily from India and Brazil, continued to shape market fundamentals. Recent Reuters forecasts indicated a shift from a surplus of 1.39 million tons in 2025/26 to a 1.5 million ton deficit in 2026/27, amid anticipated changes in how India and Brazil allocate sugarcane between sugar and ethanol production.
2026-03-18
Sugar Futures Continue to Ease
Sugar futures in the US eased further to trade slightly below 14.3 cents per pound, down from recent one-month highs of 14.6 per pound, pressured by ample global supply, which helped temper recent volatility from oil price swings driven by geopolitical tensions. The consulting firm Hedgepoint noted that the 2025/26 season continues to point to an oversupplied market, supported by strong Brazilian production and expectations of Northern Hemisphere recovery. Meanwhile, market fundamentals show that while global sugar supply still exceeds demand, the margin is narrowing. Broker StoneX cut its forecast for a global sugar surplus in the current 2025/26 season to just 870,000 tons from 2.9 million tons, driven by India’s reduced harvest and shifts in Brazil’s production patterns.
2026-03-11