Sugar Climbs to 10-Month High

Sugar prices climbed above 16 cents per pound, the highest level in ten months, as concerns over the global supply outlook intensified. Brazil’s suspension of its biweekly harvest and production reports had already increased uncertainty among traders before the latest data released on August 6th showed June sugar output fell 15% year-on-year. Unseasonably heavy rains linked to El Niño disrupted cane harvesting and milling, reinforcing expectations of a global deficit in the 2026/27 season. Market participants are also monitoring Brazil’s sugar-ethanol mix, with nearly 58% of cane juice diverted to ethanol in June. 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 limiting cane use for ethanol from October and bringing forward the crushing season to increase supply and contain record prices, as demand from the Indian festival season gathers pace.

Register a Revolut Business Account