Sugar Futures Remain Above 18 Cents

US sugar futures traded above 18 cents per pound, holding close to their highest since April 2025, amid lingering concerns over the supply outlook. Weather disruptions in Asia and Europe are tightening the global outlook, with recent estimates pointing to a potential deficit in 2026/27. Thai sugar production is expected to fall by at least 17% to below 10 million tonnes, while below-normal monsoon rainfall in India is adding to concerns over output. The European Union Sugar Market Observatory also reported recently that the bloc's production in the 2026/27 crop year is expected to fall by 19%. El Niño poses an additional risk to global sugar production, with a strong event potentially bringing drier conditions to major producers. In top producer Brazil, uncertainty centers on how weather will affect the key Center-South region and the split of sugarcane between sugar and ethanol.