Sugar Prices Reach Four-Year Low
(MENAFN) Sugar prices dropped to their lowest point in four years on Wednesday, with a pound trading at USD0.1626.
This marks a 4 percent decline since the end of the previous month and a 15 percent drop since the beginning of the year.
The primary reason behind this steep fall is the anticipation of a global increase in sugar supply.
According to the US Department of Agriculture (USDA), worldwide sugar output is projected to grow by 4.7 percent in the 2025/26 period compared to the previous year, with significant contributions expected from India, Thailand, and Brazil.
Forecasts suggesting heavier-than-normal monsoon rainfall in India this year and apprehensions regarding rising demand amid the Iran-Israel crisis are also contributing to the price slump.
In addition, China's reduced sugar acquisitions, along with the deceleration in imports from Indonesia and Bangladesh, are exerting more downward pressure on prices.
Market specialists have pointed out that projections of larger harvests due to beneficial weather patterns are a key influence on the declining trend.
Ole Hansen, head of commodity strategy at Saxo Capital, explained to a news agency that “the simple explanation is good weather conditions in Asia, Central America, and Brazil, which are favoring crops and the production of sugar,” leading to the current price trajectory.
Tore Alden, a senior analyst with Fastmarkets, also emphasized that improved climate conditions in major sugar-growing regions like Brazil are significantly affecting sugar values.
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