FX.co ★ Sugar Futures Set for Strongest Yearly Drop Since 2017

Sugar futures have been hovering around 15 cents per pound since mid-November, marking a low not seen since 2021, as the market anticipates a plentiful global supply. This year, prices have decreased by approximately 22%—the most significant decline since 2017—spurred by a forecasted global surplus for the 2025/26 season, attributed to robust harvests in Brazil, India, and Thailand. This outlook persists despite recent predictions of a diminished Brazilian harvest in the upcoming season and growing concerns over Thailand's production, which might diminish the anticipated surplus.