Sugar futures on ICE fell to 18.2 cents per pound in late June, the lowest in four months, as fears of economic slowdown weighed on the outlook of energy prices, encouraging producers to allocate sugarcane to sugar crushing instead of ethanol blending. Benchmark Brazilian ethanol prices fell by 1.8% monthly by the third week of June. Meanwhile, data from S&P Global Commodity Insights pointed to a 7.7% yearly rise in sugar production in Brazil’s Center-South region during the the first half of 2022. A sharp depreciation in the Brazilian real since the start of the month also weighed on prices. Elsewhere, data from the Indian Sugar Mills Association pointed to a record harvest in India, the world's second largest producer, for the 2021/22 year, ramping up expectations of a larger export.
Historically, Sugar reached an all time high of 65.20 in November of 1974. Sugar - data, forecasts, historical chart - was last updated on June of 2022.
Sugar is expected to trade at 18.73 Cents/LB by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 19.84 in 12 months time.