Sugar Futures at Over 1-Year High
2026-08-18 14:41
By
Luisa Carvalho
1 min. read
US sugar futures extended their recent gains, climbing above 17 cents per pound to 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 considering lowering its sugar import duty.until end-October to bolster supplies and curb record prices, adding to pressure on global supplies.