FX.co ★ Sugar Futures Advance

US sugar futures climbed toward 15 US cents per pound, approaching a one‑month high on expectations of tighter supply. In its May WASDE report, the USDA revised down its forecast for 2025/26 US sugar output, citing weak beet sugar recovery and timing-related issues in Florida. These cuts were only partly offset by higher projected raw sugar imports, while overall domestic use was left unchanged. Looking ahead to 2026/27, beet sugar production is expected to decline further due to reduced planted area and weaker yields, and cane sugar output is also projected to fall as weather-related damage in Florida more than offsets modest gains in other producing regions. In parallel, Green Pool Commodity Specialists recently raised its estimate of the global sugar deficit for the 2026/27 crop year from 1.66 million tons to 4.30 million tons, reflecting expectations of increased ethanol production amid persistently elevated oil prices.