FX.co ★ Sugar Futures at Near 2-Month Low

US sugar futures slipped to around 13.6 US cents per pound, the lowest level since mid-February, mainly on expectations of ample global supplies driven by increased production in key exporters such as Brazil, India, and Thailand. Market participants are closely tracking the progress of Brazil’s 2026/27 harvest, which began this month and is already boosting available supply.

Previously, global sugar prices had broken a downward trend that had been in place since March 2025, climbing sharply after the outbreak of conflict in the Middle East in February. This rebound was fueled by higher oil prices and expectations of stronger ethanol demand. In general, elevated oil prices tend to support sugar prices by encouraging mills to divert more cane into ethanol production, thereby tightening the supply of sugar on the international market.