Sugar Futures at Over 1-Year High

2026-08-18 14:41 By Luisa Carvalho 1 min. read

US sugar futures traded above 17 cents per pound, hovering near their highest level since May 2025.

The market remains supported by prospects of a tighter global supply, with the strongest El Niño in decades adding to production risks.

Analysts have been revising up their forecasts for a global sugar shortfall in 2026/27, with the deficit potentially widening further in 2027/28 on lower cane and beet plantings.

India, the EU and Thailand are among the regions identified as most vulnerable to adverse weather conditions.

At the same time, elevated oil prices could encourage cane diversion to ethanol production in major producers like Brazil.

The country raised its mandatory ethanol blend to 32% in late July from 30% a month earlier and 27% a year earlier, potentially reducing sugar availability.

Meanwhile, India is looking overseas to bolster sugar supplies and cool record prices, potentially intensifying demand pressure in the global market.



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