10.03.202614:58:18UTC+00Sugar Futures Off 1-Month Highs

US sugar futures slipped to around 14.3 cents per pound, retreating from the one‑month high of 14.6 cents reached on March 9, in tandem with weaker oil prices as investors grew more optimistic about a swift resolution to the Middle East crisis. In an interview with CBS News, President Trump described the war against Iran as “very complete” and said Washington was “way ahead” of its initial four‑to‑five‑week timeframe.

The easing of geopolitical tensions helped temper concerns that sugar mills worldwide—especially in Brazil, the world’s largest producer—would channel more sugarcane into ethanol production, thereby tightening sugar supplies. Because most ethanol in Brazil is derived from sugarcane, any increase in the share of cane allocated to biofuel production directly reduces the volume available for sugar.

Looking ahead, a recent Reuters poll suggested that sugar prices are likely to finish the year roughly 10% above current levels. Analysts expect the global sugar market to swing from a surplus of 1.39 million tons in the 2025/26 season to a deficit of 1.5 million tons in 2026/27, underpinning a more bullish price outlook.