Sugar Prices Near 20-Month Highs

US sugar futures were above 20 cents per pound, their highest level since February 2025, as unfavorable weather conditions in major producing countries raised concerns about global production. In Brazil, rains have delayed cane crushing in the Centre-South region and are expected to reduce sugar output this season. A significant portion of the sugarcane crop could be left to be crushed during the next harvest season, potentially extending the current crushing season into late February or early March. The El Niño weather event is also expected to weigh on production. In India, a weak monsoon could curb yields, while scorching summer temperatures in Europe are expected to result in the worst sugar-beet harvest in more than a decade. In Thailand, drought conditions in key sugar-producing regions are also threatening production. Sugar prices have risen more than 8% so far in October and are up around 40% since July.