FX.co ★ Sugar Futures Move Higher

Sugar futures in the United States have increased, reaching approximately 14.6 cents per pound. This marks a recovery from the recent three-month low of 14.3 cents per pound, as traders assess the likelihood of a reduced global surplus in the upcoming season. At the Dubai Sugar Conference, Claudiu Covrig, the lead agriculture analyst at Covrig Analytics, highlighted that the global sugar surplus is projected to decrease significantly to 1.4 million metric tons by the 2026/27 season, down from 4.7 million metric tons in 2025/26. This reduction is attributed to decreased exports from India, the world's top sugar-producing nation. In contrast, Brazil's prominent Centre-South region is anticipated to see a slight increase in sugar production, projected to rise to 40.9 million metric tons in 2026/27, up from 40.77 million metric tons in 2025/26, as reported by Brazil-based Datagro. Additionally, on January 30, StoneX revised its forecast for the 2025/26 global sugar market, predicting a 2.9-million-ton surplus. This adjustment reflects a decrease of 800,000 tons from their November estimate, reversing the previous cycle's deficit of 3.14 million tons and supporting expectations of a well-supplied market in the near term.