US sugar futures hover near 1-1/2-year high as supply tightens
US sugar futures traded above 18 cents per pound, holding close to the highest since April 2025. Supply tightening outlook points to a move from a 1.1 million-tonne 2025/26 surplus to a 200,000-tonne 2026/27 deficit.
US sugar futures traded above 18 cents per pound, holding close to their highest since April 2025, largely supported by prospects of tightening global supply.
El-Nino-related climate woes and elevated energy prices amid the Middle East conflict also remained supportive.
The ISO indicated that the global sugar market is expected to shift from a 1.1 million-tonne surplus in 2025/26 to a 200,000-tonne deficit in 2026/27, with production estimated to decline 1% to 180.1 million tonnes.
Potential El Niño-related crop disruptions in India and Thailand were among the main risks to the outlook.
This comes in line with recent projections from several consultancies indicating a potential deficit in 2026/27.
European production is another source of concern for the market.
The European Union Sugar Market Observatory reported that the bloc's production in the 2026/27 crop year is expected to fall by 19%, to 13.4 million tons.