Global sugar prices rise to highest since October 2025
Global sugar prices rose 7.5% in May to 95.1 points, the highest since October 2025. Prices increased due to concerns over lower sugar supplies from Brazil’s shift toward ethanol production and potential El Niño-related production declines in India and Thailand, though higher Brazilian output limited gains.
Global sugar prices rose 7.5% in May to their highest level since October 2025, the Food and Agriculture Organization of the United Nations (FAO) said.
The FAO Sugar Price Index averaged 95.1 points in May, up 6.6 points from April, but still 13.1% below the level in May last year.
The main reason for the price increase was concerns about a reduction in global sugar supply in the coming months.
In particular, the market reacted to data from the main sugarcane growing regions in Brazil. There, the share of cane used for sugar production decreased as producers increasingly focused on ethanol production. This strengthened expectations of a reduction in sugar supply on the world market and supported price growth.
At the same time, further price increases were restrained by an increase in cane processing volumes in the second half of April, which contributed to the growth of sugar production.
Additional support for prices was provided by concerns about the impact of the El Niño weather phenomenon on the upcoming sugarcane harvest in India and Thailand. According to FAO estimates, adverse weather conditions could reduce sugar production in these countries in the 2026/27 season and reduce global exports.
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Source : Ukr Agro Consult
