📉 Sugar Prices Decline as Market Faces Selling Pressure & Demand Concerns

ICE Sugar No. 5 futures sharply declined, with the May 2025 contract dropping by 0.99% to USD 557.40/t (EUR 518.38/t). Weak demand, profit-taking, and selling pressure continue to weigh on prices. Meanwhile, EU sugar prices remain unchanged, fluctuating between EUR 0.50 – 0.53/kg FCA, as the market fails to absorb oversupply despite producers pushing for higher contracts.

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📊 Market Overview: ICE Sugar No. 5 Prices & Developments

📌 Exchange rate used: 1 USD = 0.93 EUR

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🌍 Key Market Drivers & Influences

🔹 Profit-Taking & Weak Demand Keep Pressure on Prices 📉

• Market sentiment remains bearish, with selling pressure from speculative traders.
• Demand remains weak, preventing any sustained price recovery.

🔹 EU Sugar Market: No Price Increase Despite Higher Contract Offers 🇪🇺

• New season contracts remain at EUR 0.62/kg FCA, yet demand is not strong enough to support higher spot prices.
• Polish sugar remains cheaper, keeping EU sugar prices between EUR 0.50 – 0.53/kg FCA.
• Oversupply issues persist, as producers struggle to secure large contracts at higher rates.

🔹 Stable Global Sugar Supply Keeping Prices in Check 🌎

• India’s production is still lower, but export flows remain stable.
• Brazil & Thailand maintain steady exports, ensuring that global supply is not significantly affected.

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🔮 3-Day Price Forecast (20.03 – 22.03.2025)

📉 Expected Price Movements:

• ICE Sugar No. 5 (May 2025): 550 – 560 USD/t (512 – 522 EUR/t)
• EU Sugar (FCA Price): 0.50 – 0.53 EUR/kg

🔍 Market Outlook:

• Further price declines are possible, unless demand strengthens.
• EU sugar prices remain capped by weak consumption & oversupply.

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📉 Global Sugar Stocks & Trade Balance

📌 Key Takeaways:

• EU sugar stocks remain stable, preventing major price swings.
• Imports continue to support supply, offsetting weaker domestic demand.
• Ethanol production remains unchanged, keeping sugar allocations steady.

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🔍 Conclusion & Recommendations

📌 Key Takeaways:✅ Sugar prices continue to decline due to weak demand and selling pressure.✅ EU market remains oversupplied, preventing price increases.✅ Global sugar supply remains stable, keeping upward momentum limited.✅ Further market weakness is expected, unless demand improves significantly.

📊 Market Strategy:🔹 Buyers: Monitor market corrections, as lower prices could provide better purchasing opportunities.🔹 Sellers: Expect continued pressure, making strategic sales difficult.🔹 Traders: Watch for support levels at 550 USD/t (512 EUR/t) for short-term positioning.

🚀 Stay informed & trade strategically!