Sugar futures hit over one-year highs on supply concerns

Sugar prices on the ICE market surged to their highest in over a year on Thursday, driven by worries over potential production cuts due to El Nino weather conditions and the possibility of India joining the import market. Raw sugar climbed 0.7% to 17.68 cents per pound at 1308 GMT, after peaking at 17.99 cents earlier in the trading session.

This marked the highest level in more than a year for the commodity. Traders pointed out that the record-high prices in India might force the world's second-largest sugar producer to start importing the sweetener in the near future. The Indian government has taken action to curb prices by instructing large consumers, who use more than 10 metric tons of sugar per month, to limit their inventories to a maximum 15-day supply.

According to Brazil's national crop agency Conab, the South American country's sugar output is expected to drop by 2.9% to 42.9 million tons in the 2026/27 season. White sugar followed the trend, increasing 1.6% to $550.70 per ton, its highest price since March 2025. This report was produced with the assistance of artificial intelligence and edited by a human. For further details, consult the terms and conditions.