Sugar Futures at Over 1-Week High

2026-04-24 15:34 By Luisa Carvalho 1 min. read

Sugar futures in the US rose past 14 US cents, reaching the highest in over a week, mainly on the back of elevated oil prices and forecasts of reduced output in the next season.

Persistent shipping disruptions from the Iran conflict have increased oil price volatility, potentially encouraging mills to divert more sugarcane to ethanol production.

Regarding market fundamentals, expectations of a sizeable surplus in 2025/26 continue to dominate, but as the season winds down, attention is shifting to 2026/27, with analysts still projecting a surplus, albeit smaller.

Trading firm Czarnikow has sharply reduced its estimate of the global sugar surplus for 2026/27 to 1.1 million tonnes from 3.4 million in February, citing El Niño risks to cane production in India, Thailand, and Brazil.

Meanwhile, market participants continued to monitor Brazil’s 2026/27 harvest, which began this month and is progressing, supported by drier weather across key producing regions.



News Stream
Sugar Futures at Over 1-Week High
Sugar futures in the US rose past 14 US cents, reaching the highest in over a week, mainly on the back of elevated oil prices and forecasts of reduced output in the next season. Persistent shipping disruptions from the Iran conflict have increased oil price volatility, potentially encouraging mills to divert more sugarcane to ethanol production. Regarding market fundamentals, expectations of a sizeable surplus in 2025/26 continue to dominate, but as the season winds down, attention is shifting to 2026/27, with analysts still projecting a surplus, albeit smaller. Trading firm Czarnikow has sharply reduced its estimate of the global sugar surplus for 2026/27 to 1.1 million tonnes from 3.4 million in February, citing El Niño risks to cane production in India, Thailand, and Brazil. Meanwhile, market participants continued to monitor Brazil’s 2026/27 harvest, which began this month and is progressing, supported by drier weather across key producing regions.
2026-04-24
Sugar Futures at Near 2-Month Low
Sugar futures in the US traded at around 13.5 US cents, the lowest since mid-February, largely reflecting expectations of abundant global supplies, particularly due to higher output in major producing countries such as Brazil, India and Thailand. Market participants are closely monitoring the progress of the 2026/27 harvest in Brazil, which began this month and is increasing supply availability. Global sugar prices reversed a downtrend that had persisted since March 2025, rising sharply following the onset of the Middle East conflict in February, driven by higher oil prices and expectations of stronger ethanol demand. In general, higher oil prices encourage mills to increase ethanol production, thereby reducing supply of sugar in the international market.
2026-04-14
Sugar Futures Remain Near 1-Month Lows
Sugar futures in the US rose to around 13.9 US cents but stayed near one-month lows, as higher oil prices amid geopolitical tensions were offset by prospects of abundant supply. Rising oil prices could incentivize mills to divert more sugarcane to ethanol, potentially tightening supply. Still, expectations of a sizeable surplus in 2025/26 continue to dominate, supported by strong output from major producers. Latest data showed India’s sugar production rose 9% year-on-year to 27.12 million tonnes in the October–March period of the 2025/26 marketing year, while Brazil’s Center-South output edged up 0.7% to 40.25 million tonnes, with mills favoring sugar production. Attention now turns to the 2026/27 season, with leading global analysts still expecting a surplus, albeit a smaller one, supported by favorable harvest forecasts in Brazil, India, and Thailand.
2026-04-13