Sugar Hits 6-week Low

Sugar decreased to 13.86 USd/Lbs, the lowest since April 2026. Over the past 4 weeks, Sugar lost 6.95%, and in the last 12 months, it decreased 15.54%.

Sugar futures in the US eased to below 13.9 US cents, the lowest since April 22, partly influenced by falling oil prices and the ongoing weakness in the Brazilian real. The strong performance of the 2026/27 sugarcane harvest is also putting pressure on prices, due to increased supply and growing inventories. The Brazilian Sugarcane and Bioenergy Industry Association (UNICA) reported that sugar production in Brazil's Center-South region reached 2.475 million tons in April of the 2026/27 crop year, a volume 55.3% higher than that recorded in the same period of the previous cycle. Strength in Thailand’s sugar exports, the world’s second-largest, also reinforced the perception of a comfortable supply. However, concerns persisted about the potential impact of the El Niño weather phenomenon on the upcoming global sugarcane harvest, particularly in Brazil, India and Thailand.

Sugar futures in the US traded slightly above 14.3 US cents, up from one-month-lows of 13.9 US cents hit on May 28, supported by higher oil prices that encourage cane diversion to ethanol production and may tighten supply. At the same time, concerns are rising over an emerging El Niño pattern and a weaker Indian monsoon outlook. India’s weather office projected monsoon rainfall at 90% of the long-term average for June–September, down from 92% in April. This led Covrig to reduce the global sugar surplus for 2026–27 to 100,000 tons, down from 1.4 million tons projected on March 7. Meanwhile, Unica reported a strong increase in sugar production in Brazil’s key Center-South region, with output rising 109.48% yoy to 1.8 million metric tons in the second half of April. Data also indicated a continued shift toward ethanol production, with mills directing 59.66% of cane to biofuel.