Bearish
Sugar futures decline amid favorable Brazilian harvest and improved Indian monsoon
Sugar futures have softened due to favorable harvesting conditions in Brazil and improved monsoon rains in India, which have alleviated supply concerns. Additionally, the Brazilian government's decision to increase the mandatory ethanol blend in gasoline is expected to divert more sugarcane towards ethanol production, further reducing sugar availability.
Key points
- ICE Sugar No.11 futures closed at 14.47 cents per pound on July 16, 2026, down 2.58% from the previous day.
- The Brazilian government approved an increase in the mandatory blend of anhydrous ethanol in gasoline, reinforcing expectations of higher demand for ethanol and a greater allocation of sugarcane to ethanol production.
- The UN weather agency increased the likelihood of a strong El Niño event, which could adversely affect crops in key sugar-producing regions.
Sources
- Sugar futures in the US traded around 14.7 US cents, a near three-week lowTrading Economics · July 16, 2026
- Raw sugar falls on energy price declines and China demand dropInvesting.com · June 18, 2026
- Açúcar recua em NY com clima favorável no Brasil e demanda enfraquecidaSAFRAS & Mercado · July 16, 2026
AI-generated from public news sources. Not financial advice.
