Sugar Prices Show Mixed Trends – Stability in Short-Term Contracts, Gains in Long-Term Futures

On Friday, November 22, 2024, ICE Sugar No.5 futures displayed mixed movements. While short-term contracts remained primarily unchanged, long-term futures recorded slight price increases.

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Market Performance

• The March 2025 contract, the most actively traded, closed at 553.60 USD/t, a marginal decline of 0.04%.
• Gains were observed in longer-term contracts, including:
  • May 2025: +0.22% to 550.00 USD/t.
  • October 2025: +0.38% to 528.70 USD/t.
  • Contracts maturing through October 2026 rose by 0.42% to 0.44%, albeit with minimal trading volume.

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Market Drivers

Prices reflect stabilization in short-term contracts, while longer-term futures hint at more optimistic market expectations. Trading activity was concentrated on short-term contracts, with deficient activity in longer-term positions.

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Context

These price movements occur within broader global production and demand dynamics. Key players such as Brazil and India continue to influence the market through their production figures and export strategies. Additionally, crude oil prices, which often indicate ethanol demand and, thereby, sugar, remain a closely watched factor.

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Outlook

The stability in short-term prices suggests a balanced market, while the gains in long-term contracts indicate cautious optimism. Market participants will closely monitor global weather conditions and export decisions from major producing nations in the coming weeks.