ICE Raw Sugar Prices Rebound from Four-Week Lows

ICE raw sugar futures closed higher this Friday, recovering from a four-week low hit on Thursday. Traders are of the view that the market has currently priced in the ample short-term supplies. The July raw sugar contract rose by 0.13 cents, or 0.9%, to 14.06 cents per pound, after reaching its lowest level since late April on Thursday. Despite the rebound, the market still saw a 4.3% decline over the week. While Brazil, the world's largest sugar producer, has seen a strong start to its sugar harvest, brokerage firm ADMIS cautioned that it might be overly optimistic to expect Brazil's sugar production to maintain its current robust pace. Furthermore, concerns are also being noted regarding the impact of the monsoon season in India, the second-largest producer. India has forecast an El Niño-weakened monsoon for 2026, predicting the lowest rainfall in 11 years, which fuels worries about crop yields, food prices, and the growth of the world's fifth-largest economy. The recovery in sugar prices occurred despite a drop in oil prices, which was attributed to a potential extension of the ceasefire between the U.S. and Iran. Higher energy prices are typically considered bullish for sugar, as they often incentivize sugarcane mills to produce more ethanol fuel and less sugar. Concurrently, the most active white sugar contract climbed 2.9% to $438.20 per tonne.