Global Sugar Prices Surge, Approaching 19-Month High

Sugar prices continued their rise in global markets, approaching their highest levels in 19 months, driven by concerns over declining production and supplies due to heavy rains in Brazil, the world’s largest sugar producer, alongside deteriorating production forecasts in several key markets.

Raw sugar futures on the Intercontinental Exchange rose 2.3% to reach 20.72 cents per pound by 13:55 GMT, after touching 21.24 cents last Wednesday, marking a 19-month high. White sugar futures also climbed 2.4%, reaching $555.60 per ton.

These increases came amid growing concern over the impact of record rains linked to the El Niño phenomenon in Brazil, which the country experienced last September, with forecasts predicting continued rainfall in October and reports of flooding in areas of the sugarcane crop.

Green Pole Consulting confirmed that these developments highlight the global market’s dependence on Brazil’s sugar production and exports, and the potential price pressures resulting from supply disruptions.

In parallel with concerns in Brazil, sugar production forecasts are declining in India and the European Union. The U.S. Department of Agriculture lowered its forecast for EU sugar production for the 2026–2027 season by 8%, due to last summer’s drought, while also reducing its U.S. production estimate for the same season by 0.8%, to the lowest level since the 2019–2020 season.