Global Sugar Prices Rise on Brazilian Crop Concerns

Global sugar prices have experienced a modest increase this week, primarily fueled by emerging concerns over the upcoming sugarcane harvest in Brazil, the world's largest sugar producer. Analysts at HiSugar report that persistent dry weather conditions in key growing regions of the Center-South are raising anxieties about potential yield reductions for the 2026/27 season. While current estimates still project robust output, the market is reacting to early forecasts suggesting a possible downward revision if rainfall does not significantly improve in the coming months. Futures contracts for raw sugar on the ICE exchange saw a 1.5% rise, settling at 20.85 cents per pound. Traders are closely monitoring meteorological reports and initial crop development, with many recalling the impact of similar weather patterns in previous years. Furthermore, a slight weakening of the Brazilian Real against the US Dollar has offered some support to international prices, making Brazilian exports less attractive in dollar terms. The market remains volatile, with participants weighing strong global demand against supply uncertainties. India's export policy for the next marketing year is also a key factor, though no definitive announcements have been made, adding another layer of speculation to the global supply outlook.