Sugar futures in the US climbed to about 14.4 US cents per pound, rebounding from the one‑month low of 13.9 US cents reached on May 28. Prices were buoyed by higher oil quotations, which encourage mills to divert more cane to ethanol production and could tighten sugar supplies.
At the same time, the market remains focused on climate risks linked to a potential El Niño event, which could affect global sugar output in the coming months. Such conditions are expected to reduce rainfall in Brazil, India, and Thailand, the world’s three largest sugar producers. In line with these concerns, India’s weather office lowered its forecast for monsoon rainfall to 90% of the long‑term average for June–September, down from 92% in April.
Offsetting some of these worries, Unica reported a sharp rise in sugar production in Brazil’s Center‑South region, where output in April of the 2026/27 season jumped 55.3% year-on-year to 2.475 million tons.
