Sugar Market Extends Losses โ Pressure Mounts as Demand Remains Weak
๐ Sugar Market Extends Losses โ Pressure Mounts as Demand Remains Weak
On 28 April 2025, ICE Sugar No. 5 futures continued to slide, with the August 2025 contract falling by 1.72% to USD 505.30/t (EUR 470.93/t). Broad-based losses across the forward curve reflect ample supply, soft global demand, and growing pessimism among traders. Meanwhile, the EU market remains detached, with FCA spot prices stubbornly holding at EUR 0.56โ0.59/kg, despite clear signs of international weakness.๐ ICE Sugar No. 5 โ Closing Summary (28.04.2025)
(Exchange rate: 1 USD = 0.93 EUR)๐งญ Market Commentary
๐ Broad-Based Selloff Reflects Weak Fundamentalsโ No new catalysts; traders continue to liquidate long positions.โ Seasonal pressure from the beginning of Brazil's harvest also weighs heavily.๐ช๐บ EU Spot Prices Remain High โ Gap Widens Furtherโ No adjustment in EU offers: still EUR 0.56โ0.59/kg FCA.โ Import restrictions and tariff protection continue to insulate EU producers, frustrating buyers.
๐๏ธ Retail Market Stable at Low Levelsโ No upward movement in retail prices observed across core markets.
๐ Current 1โฏkg Retail Sugar Prices (as of 28.04.2025)
Last verified within the last 3 days.๐ฎ 3-Day Price Forecast (29 April โ 1 May 2025)
๐ Outlook:Downward bias is likely to continue unless unexpected supply disruptions emerge.๐ Global Sugar Balance Sheet (2021โ2025f)
๐งญ Conclusion & Strategy
โ Market structure favours sellers โ weak demand meets strong supply.โ The EU spot market remains overpriced compared to global benchmarks.๐ Retail realities and global oversupply limit upside potential.๐ Recommendations:
- ๐ Buyers: Maintain a cautious approach โ pressure on sellers will rise.
- ๐ฆ Sellers: Forward sales should be volume-based; avoid speculative pricing.
- ๐ Traders: Watch support levels near USD 500/t โ further breakdown possible.
