FX.co ★ Sugar Futures at 2-Week Lows

US sugar futures extended their decline toward 15.2 US cents per pound, hitting a two-week low, pressured in part by weaker crude oil prices as geopolitical tensions eased. Earlier, hostilities in the Middle East had driven sugar prices to nearly six‑month highs by severely disrupting maritime traffic through the Strait of Hormuz, a critical corridor for raw sugar shipments to regional refineries and for white sugar exports.

However, abundant global supply—especially from Brazil—continues to cap prices. On March 27, Unica reported that cumulative sugar production in Brazil’s Center-South region for the 2025/26 harvest rose 0.7% year-on-year to 40.25 million tons. The share of sugarcane directed to sugar production also increased, reaching 50.61%, up from 48.08% in the previous season.

At the same time, Czarnikow raised its forecast for global sugar output in the 2025/26 season by 100,000 tons to 184.5 million metric tons—the second-highest level on record—even after downgrading its estimate for India’s production.