Global Sugar Prices Rise Slightly Amidst Persistent Supply Concerns

Global raw sugar prices on the ICE Futures exchange saw a modest increase this week, primarily driven by ongoing concerns regarding supply tightness in key producing regions. The March 2026 contract for raw sugar closed at 22.85 cents per pound, up 0.7% from the previous week. Analysts point to a confluence of factors contributing to this upward pressure. Brazil, the world's largest sugar exporter, continues to face logistical challenges and a slower-than-anticipated start to its new crop crushing season, with some reports indicating a potential downward revision in initial production forecasts. Meanwhile, adverse weather conditions, including unseasonal heavy rains in parts of India, have raised questions about the final output from the world's second-largest producer. Traders are closely monitoring the situation in Thailand, where cane yields have been impacted by earlier drought conditions, although recent rainfall has offered some relief. The market remains sensitive to any news regarding these major players, as global inventories are perceived to be tighter than in previous years. Furthermore, robust demand from importing nations, particularly in Asia and Africa, continues to underpin prices. Industry experts suggest that without a significant upside surprise in production from a major origin, sugar prices are likely to remain elevated in the short to medium term, potentially impacting food inflation globally. The current market sentiment reflects cautious optimism for producers but a watchful stance for industrial buyers.