Sugar Prices Surge as Market Adjusts โ EU Prices Remain Stable
๐ Sugar Prices Surge as Market Adjusts โ EU Prices Remain Stable
๐น Market Overview: ICE Sugar No. 5 Prices Continue Upward Trend
Global sugar prices notably increased in the latest trading session, with ICE Sugar No. 5 (May 2025 contract) rising by 1.61% to USD 563.80/t (EUR 521.40/t). Similar gains were observed across future contracts, reflecting bullish sentiment driven by tighter supply expectations and stronger demand.๐ Key Market Movements โ 25.02.2025
(Exchange rate: 1 USD = 0.925 EUR)
๐ Key Market Drivers & Influences
- ๐ฎ๐ณ Indiaโs Lower Production Outlook: Reduced sugar output in India continues to influence global supply sentiment, adding upward pressure on prices.
- ๐ฆ๏ธ Weather Conditions: Persistent concerns over weather anomalies in major sugar-producing regions, such as Brazil and Thailand, have added to supply uncertainties.
- ๐ Strong Demand for Raw Sugar: Refiners worldwide have increased purchases, further tightening available stocks.
๐ EU Market: Stable Prices Amid Steady Demand
In the EU market, sugar prices have remained stable at EUR 0.56/kg FCA, with no significant shifts in demand. Analysts point out that contractual obligations from major buyers are largely fulfilled, and approximately 30% of market volume remains uncontracted.๐ EU Market Summary
๐ฎ 3-Day Price Forecast (27.02 โ 29.02.2025)
๐ Expected Price Movements:- ICE Sugar No. 5 (May 2025): 565 โ 570 USD/t (522 โ 527 EUR/t)
- EU Sugar (FCA Price): 0.56 โ 0.58 EUR/kg
- Prices will likely remain firm, with possible short-term gains driven by further global supply concerns.
- A potential correction could occur if major buyers pause purchases, awaiting price stabilization.
โ 14-Day Weather Outlook for Key Growing Regions
๐ Global Sugar Stocks & Trade Balance
๐ EU Sugar Supply & Demand๐ Conclusion & Recommendations
- ๐ Bullish Factors: Declining production in key markets & strong refining demand.
- ๐ Bearish Risks: Potential correction if buying activity slows.
- ๐ Strategy: Buyers should monitor market corrections before committing to long-term contracts. Short-term traders may benefit from taking positions amid volatility.
