Sugar Prices Decline on ICE, Tracking Energy Market Downturn

Sugar futures traded on the ICE exchange declined on Thursday, primarily influenced by a drop in crude oil prices. The July raw sugar contract fell by 0.26 cents, or 1.9%, settling at 13.59 cents per pound. This followed a nearly two-month low of 13.56 cents per pound reached on Tuesday. Concurrently, the most active white sugar contract saw a 1.5% decrease, trading at $445.30 per tonne. The persistent weakness in energy prices continues to exert pressure on the sugar market, incentivizing sugarcane mills to prioritize sugar production over ethanol. Furthermore, data released indicated that China, the world's largest sugar importer, reduced its sugar purchases by 36.8% in May compared to the same month last year, adding to the bearish sentiment. However, long-term fears that the El Niño weather phenomenon could lead to reduced sugar output are providing some support, limiting more significant losses in the market.