Sugar Prices Rise on Concerns Over Brazil Cane Output

03-Oct-2025 08:38 PM

New York. Due to adverse weather conditions in Brazil, the world's largest producer and exporter of sugar, located in the South American continent, there are growing fears of a decline in sugarcane yields and production.

Consequently, sugar futures prices on the New York and London exchanges have improved slightly. Raw sugar futures for March 2026 delivery on the New York exchange increased by 0.27 cents per pound (1.67%), and white sugar futures for the December 2025 contract on the London exchange increased by $5.90 per tonne, or 1.30%.

Although a report by UNICA, the apex body of the Brazilian sugar industry, shows that sugarcane crushing in the Central Southern region,

Brazil's leading producer, increased to 46 million tons in the first half of September 2025, representing a 6.9 percent increase over the crushing volume in September 2024, the average sugar recovery rate from sugarcane declined from 160.07 kg per tonne to 154.58 kg per tonne during this period, raising doubts about the potential for increased sugar production.

On September 30, 2025, Pakistan placed an order for a total of 320,000 tons of sugar for immediate delivery, while strong demand was also observed in several other countries.

As a result, sugar futures prices rose to a one-and-a-half-month high on the New York Exchange and a two-week high on the London Exchange.

Just a week prior, sugar futures prices had fallen sharply, falling to a four-and-a-quarter-year low in New York and a four-year low in London.

Sugar futures prices have been subdued for the past seven months. The global supply and availability of sugar remains relatively stable, so buying by buyer countries occasionally leads to a slight increase in prices, but these fluctuations are short-lived. Sugarcane crushing in India is expected to resume soon, leading to new sugar production.