FX.co ★ Sugar Futures Remain Near 1-Month Lows

US sugar futures ticked up to about 13.9 US cents per pound but remained close to one‑month lows, as support from higher oil prices amid geopolitical tensions was outweighed by robust supply prospects. Firmer crude prices could encourage mills to allocate more sugarcane to ethanol production, potentially tightening sugar availability. However, expectations of a sizeable surplus in the 2025/26 season continue to dominate the market, underpinned by strong output from key producers.

Recent data showed India’s sugar production rising 9% year-on-year to 27.12 million tonnes in the October–March period. In Brazil, output in the Center-South region inched up 0.7% to 40.25 million tonnes, with mills prioritizing sugar over ethanol. At the same time, India’s Food Secretary said the government has no plans to ban sugar exports this year, easing concerns that additional volumes could be diverted to ethanol and reinforcing expectations of ample global supply.