FX.co ★ Sugar Futures at Near 1-Week High

US sugar futures climbed to nearly 14 cents per pound, the highest level in almost a week, as the conflict in the Middle East pushed oil prices higher and sparked concerns about potential disruptions to sugar production. Rising oil prices typically improve the profitability of ethanol, encouraging global producers to divert a larger share of sugarcane to biofuel rather than sugar, which can tighten supplies on the world market. Analysts now anticipate that mills in Brazil, the world’s largest sugar producer, may respond to these conditions by prioritizing ethanol output over sugar.