ICE Raw Sugar Prices Decline After Hitting Five-Month Peak

Raw sugar futures traded on the ICE exchange retreated on Monday after reaching a five-month high. The May raw sugar contract fell by 0.21 cents, or 1.3%, to 15.55 cents per pound, having previously touched a five-month peak of 16.10 cents per pound. Traders observed that a modest pullback was not unexpected, given the strong recent rally in prices. The market has soared by up to 18% since the beginning of March. Higher energy prices and increased fertilizer costs, both linked to the Middle East conflict, have contributed to boosting the sugar market. Green Pool Commodities stated that the market is closely watching for any moves by Petrobras regarding gasoline prices. The company has not yet implemented any fuel price increases since the onset of the conflict involving Iran. Green Pool also noted that the current situation will continue to incentivize mills in Brazil to increase ethanol production at the start of the harvest season, potentially impacting sugar availability. Concurrently, the most active white sugar contract declined by 1.4%, settling at $452.30 per tonne.