2026.06.2611:20:47UTC+00Sugar Futures On the Rise

US sugar futures traded around 14.2 US cents per pound, rebounding from recent two‑month lows of 13.8 US cents, as mounting concerns over global supply underpinned prices. Traders weighed weaker Brazilian production and India’s rainfall deficits, while also tracking potential impacts from the reopening of the Strait of Hormuz.

Fresh data from industry group Unica showed that sugar output in Brazil’s key center-south region fell 25.6% year-on-year to 2.2 million metric tons in the second half of May. Sugarcane crush volumes were also lower, down 13% to 41.5 million tons, as heavy rains disrupted harvesting in several areas. The figures further indicated that mills are diverting more cane to ethanol production, reflecting more attractive margins in that segment.

In India, the world’s second-largest sugar producer, the Meteorological Department reported that monsoon rainfall was 42% below the long-term average as of June 24, intensifying concerns over crop yields. Nonetheless, the upside for sugar prices remained limited by weaker crude oil prices, which dampen the incentive for ethanol production and reduce spillover support for sugar.