Sugar Futures at 1-Week High

2026-05-20 14:29 By Luisa Carvalho 1 min. read

Sugar futures in the US traded slightly above 15 US cents, the highest in a week, reflecting concerns over the upcoming season and expectations of increased demand for biofuels.

The International Sugar Organization (ISO) new estimates indicated a larger 2025/26 global sugar surplus of 2.244 million tons, compared with 1.22 million previously.

However, it projected global sugar production in 2026/27 to fall 1.15% year-on-year to 180 MMT, resulting in a 262,000 MT deficit, citing potential El Niño-driven disruptions in India and Thailand.

Ethanol production is forecast to rise from 123.1 to 129.4 billion litres in 2026, supported by a recovery in Brazil and expansion in India, with consumption at 126.9 billion litres, still below output.

Meanwhile, Brazil’s fuel subsidies to offset higher gasoline and diesel prices from the Iran conflict are expected to support ethanol, potentially shifting sugar mills toward ethanol production.



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