Global Sugar Prices Rise on Persistent Supply Concerns from Key Producers
Global sugar futures edged up this week, driven by ongoing supply concerns from major producers like Brazil and India. Brazil's sugarcane diversion to ethanol and India's erratic monsoon patterns are key factors supporting prices, with traders closely monitoring production and policy shifts.
London, UK – February 2, 2026 – Global sugar futures saw a modest uptick this week, with March 2026 ICE No. 11 contracts trading around 20.85 cents per pound. This increase is largely attributed to ongoing anxieties regarding supply stability from major exporting nations, particularly Brazil and India. Analysts point to the latest reports from Brazil's CONAB, which, despite projecting a robust sugarcane harvest for the 2025/26 season, also highlighted potential logistical bottlenecks and the persistent ethanol parity influencing millers' decisions. A significant portion of the cane crush is still being diverted to ethanol production, limiting sugar availability for export.
Meanwhile, India's sugar production outlook continues to be a focal point. While the Indian Sugar Mills Association (ISMA) maintains its initial estimates for the current marketing year, concerns linger over the impact of erratic monsoon patterns in key growing regions like Maharashtra and Karnataka on the upcoming 2026/27 crop. Any downward revision in India's export quota or a domestic supply squeeze could send global prices significantly higher. Traders are closely monitoring weather forecasts and government policy statements from both nations, as these factors are expected to dictate market direction in the coming months. The delicate balance between supply and demand remains highly sensitive to any production or policy shifts from these dominant players.