03.12.202515:44:42UTC+00Sugar Futures on the Rise

Sugar futures have increased towards 15 cents per pound, driven by the anticipation that leading producer Brazil may redirect more of its sugarcane from sugar production to ethanol. According to the Sugarcane Industry Union (UNICA), sugar output in Brazil's prominent Center-South region rose by 8.7% year-over-year, reaching 983,000 tons during the first half of November. The data further revealed a decrease in the proportion of sugarcane used for sugar production, dropping by 7.4 percentage points from 46% to 38.6%. Despite this shift, sugar production in the region is anticipated to remain at 40.8 million tons for the current crop, as mills opt to allocate more cane for ethanol production. However, cane production itself is expected to increase, reaching 620 million tons by the 2026-27 season, based on projections from Datagro. Additionally, European producers are forecasted to decrease the planted acreage by 10% for the 2026/27 crop, following a comparable reduction observed in the ongoing 2025/26 season. Furthermore, India's sugar production has seen a significant increase, skyrocketing by 43% year-over-year, totaling 4.11 million tons between October and November.