Sugar Futures Hover Around $14
2026-06-16 15:25
By
Luisa Carvalho
1 min. read
Sugar futures in the US have been trading around 14 US cents since late May, as supportive fundamentals from ample global supply keep prices subdued despite climate risks.
At the same time, the announcement of a preliminary agreement to end the Middle East conflict and reopen the Strait of Hormuz improved the outlook for agricultural commodities, including sugar..
According to the consulting firm Covrig Analytics, the closure of the Strait of Hormuz restricted approximately 6% of the world's sugar trade.
Oil prices also fell sharply, making ethanol less competitive and potentially prompting mills to shift more sugarcane to sugar production.
However, concerns over the impact of an emerging El Niño pattern on key producing regions of Brazil and India limited the downside.
Lastly, consulting firm Czarnikow has revised its global sugar balance, now forecasting a 100,000-ton deficit for 2026/27, compared with a prior estimate of a 1.4 million-ton surplus.