April 7, 20264 views0 shares
Despite Real's Appreciation, ICE Sugar Prices Continue to Fall
ICE raw sugar futures fell on Monday, with the May contract closing at 14.97 cents per pound. Prices were pressured by expectations of increased global supply, following reports of a 9% rise in India's sugar production for the 2025/26 season. However, the appreciation of the Brazilian Real helped limit losses by slowing down Brazilian exports.
Raw sugar futures traded on the Intercontinental Exchange (ICE) continued their downward trend on Monday. The May contract, in particular, saw a 0.2% decline, settling at 14.97 cents per pound. This price drop was primarily driven by market expectations of an increase in global sugar supply.
Reports from the National Federation of Cooperative Sugar Factories of India indicated a significant rise in the country's sugar production. For the 2025/26 season to date, India's output has grown by 9%, reaching a total of 27.12 million tonnes. This substantial increase in production fueled concerns about a global supply surplus, exerting downward pressure on sugar prices.
However, the appreciation of the Brazilian Real played a role in limiting the extent of the price losses. A stronger Real makes Brazilian exports, priced in U.S. dollars, more expensive. This, in turn, tends to slow down the pace of Brazilian sugar exports, providing some support to the market and preventing a more pronounced decline in prices.