Sugar market
Global sugar prices are trending upward, driven by higher oil prices and geopolitical tensions. In Brazil, this is shifting production towards ethanol, reducing sugar availability for export. At the same time, India’s output may come in lower than expected. While a surplus is anticipated for 2025/26, the outlook for 2026/27 remains uncertain.
In the EU, structural changes are impacting supply. Factory closures and a declining beet cultivation area point to lower production. Although current stock levels remain high, they are expected to decrease. Meanwhile, additional imports could add pressure on prices.
In short:
The market is balancing between upward pressure from tighter production and ethanol dynamics, and downward pressure from high stocks and potential imports.