Sugar prices slip as oil declines
Global sugar prices eased as oil markets cooled after comments from Donald Trump about delaying potential strikes on Iran, according to Reuters. Lower energy prices could shift cane use toward sugar instead of ethanol in major producers like Brazil and India, pressuring prices.
Global sugar prices moved lower on Monday as easing tensions in the energy market influenced trading sentiment, Reuters reported.
Raw sugar futures on the Intercontinental Exchange declined by 1% to 15.55 cents per pound by 12:53 GMT. Earlier in the session, prices had touched 15.75 cents, the highest level seen since October.
The drop followed a fall in oil prices after U.S. President Donald Trump indicated that the United States would delay any potential strikes on Iran’s power plants and energy infrastructure. Lower energy prices often lead sugar mills, especially in major producing countries like Brazil and India, to shift production towards sugar instead of ethanol, a fuel derived from sugarcane.
Despite Monday’s decline, the sugar market had recorded strong gains last week. Raw sugar prices rose nearly 10%, tracking a surge in energy markets driven by concerns linked to the ongoing Iran conflict. This marked the commodity’s strongest weekly rise in about one and a half years.
Market pressure also came from increased export activity by India, the world’s second-largest sugar producer. Indian mills re-entered the global market, securing deals for around 100,000 metric tons of sugar within a week. The move was supported by a weaker rupee and higher global prices, which improved export viability.
Meanwhile, white sugar prices also edged lower, slipping 0.4% to $449.40 per metric ton, after posting an 8.7% gain in the previous week.
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Source : Chinimandi
