Sugar Prices Slip Again โ Market Remains Under Pressure as EU Demand Fades
๐ Sugar Prices Slip Again โ Market Remains Under Pressure as EU Demand Fades
ICE Sugar No. 5 futures fell for the second day in a row. The May 2025 contract lost 0.46% to close at USD 537.80/t (EUR 500.15/t). Despite global supply stability, prices are declining due to a lack of fresh demand, fading speculative interest, and a stagnant EU spot market, which continues to resist higher prices despite forward offers at EUR 0.62/kg FCA.๐ ICE Sugar No. 5 โ Market Summary (27.03.2025)
(Exchange rate: 1 USD = 0.93 EUR)๐งญ Market Drivers & Commentary
๐ Technical Pressure Continuesโ After the brief stabilization earlier in the week, the market is again slipping.โ No new buying momentum has emerged to support higher levels.๐ช๐บ EU Spot Market Remains Quietโ Prices are still stuck at EUR 0.50โ0.53/kg FCA.โ Buyers remain cautious, while producers continue to float offers above EUR 0.60/kg โ without traction.โ Retail disconnect persists, especially in Eastern Europe (e.g. offers at EUR 0.37/kg in Poland).
๐ Global Supply Conditions Stableโ No additional weather or logistics concerns were reported.โ India and Brazil exports continue normally โ the market is fundamentally well-supplied.
๐ฎ 3-Day Forecast (28โ30 March 2025)
๐ Outlook:Short-term volatility continues. Prices will likely remain under pressure with no strong macro or weather triggers.๐งพ Global Sugar Balance Sheet
๐งญ Conclusion & Strategy
๐ Key Takeaways:โ Prices continue to decline โ no support from fundamentals.๐ EU spot demand remains soft, despite forward price rhetoric.๐ฆ Retail pressure from Eastern Europe continues to weigh on sentiment.๐ Recommendations:
- ๐ Buyers: No need to rush โ price weakness may continue.
- ๐ Sellers: Focus on volume-linked forward contracts; avoid speculative pricing.
- ๐ Traders: Watch for support near 530 USD/t (493 EUR/t) โ sentiment remains fragile.
