FX.co ★ Sugar Futures Move Up

US sugar futures climbed to around 15.4 US cents per pound, rebounding from the two-week low of 15.2 cents reached on April 1st. The increase was driven largely by the sharp rise in oil prices amid renewed tensions in the Middle East. Higher energy prices encourage producers to divert more sugarcane into ethanol production, tightening the supply of sugar on the global market.

According to Hedgepoint Global Markets, the underlying fundamentals of the global sugar market remain broadly unchanged; current price movements are being shaped mainly by external macroeconomic factors and technical trading patterns. Market participants are closely monitoring supply developments, particularly in Brazil, where favorable weather and steady crop estimates are supporting expectations of increased availability.

In line with this outlook, Czarnikow has raised its forecast for global sugar production in the 2025/26 season by 100,000 tons, to 184.5 million metric tons. This would mark the second-highest output on record, even after the firm revised its estimate for India’s production downward.