Raw and white sugar futures on ICE surged to their highest levels in more than a year on Thursday, driven by supply concerns tied to adverse weather and shifting trade dynamics.
Raw sugar futures rose 0.7% to 17.68 cents per pound by 1308 GMT, after briefly touching 17.99 cents per pound earlier in the session, a level not seen since mid-2023. White sugar futures climbed 1.6% to $550.70 per ton, with prices peaking at $564.40 per ton, the highest since March 2025.
Market participants cited two primary factors behind the rally. First, the emergence of El Nino weather patterns has raised concerns about potential disruptions to sugar cane yields in key producing regions. Second, India—currently the world’s second-largest sugar producer—may soon enter the import market as domestic prices surge to record highs.
Indian authorities have responded by imposing inventory limits on bulk consumers. Businesses using more than 10 metric tons of sugar monthly are now restricted to holding no more than a 15-day supply, a measure aimed at curbing price inflation amid elevated domestic costs.
Brazil, the world’s largest sugar exporter, added to supply worries after its national crop agency, Conab, projected a 2.9% decline in sugar production for the 2026/27 season, forecasting output at 42.9 million tons. The forecast underscores the strain on global sugar supplies as adverse weather and policy measures tighten availability.
