ICE Sugar Futures Fall for Second Consecutive Day, with Benchmark Contract Down Over 1%

On May 25th, Wednesday, the ICE (Intercontinental Exchange) No. 11 raw sugar futures fell for the second consecutive day, with the benchmark contract down 1.24%. Traders said that since reaching an 11-year high last month, sugar futures have entered a consolidation phase.

1. On Wednesday, the US dollar rebounded to a two-month high, putting pressure on sugar futures. The pace of sugarcane harvesting in Brazil has accelerated, which may also put pressure on prices. On May 11th, the Brazilian Sugarcane Industry Association stated that Brazil’s sugar production for the 2023/24 season (from April to March) was 1.531 million tons, a year-on-year increase of 43.7%. In addition, the proportion of sugarcane squeezed for sugar production increased from 35.3% last year to 41.6%.
2. Recently, dry weather in Brazil has helped sugarcane harvesting. Rural Clima, a Brazilian meteorological agency, predicts no rain in Brazil at the end of this month. Since 2023, raw sugar futures have risen by 41.77%, mainly reflecting weaker sugar production prospects in India, Pakistan, Thailand, China, and the EU. This year, changes in global weather patterns may weaken global sugar production, which also supports sugar prices.