Sugar Market Drops Again โ Demand Lacking as EU Price Hopes Fade
On 22 May 2025, ICE Sugar No. 5 futures saw another sharp decline. The
August 2025 contract dropped 1.97% to USD 488.10/t (EUR 453.93/t). Despite recent volatility, the market continues to
lack demand support. In Europe, sugar producers dream of new campaign prices
above EUR 0.60/kg, but analysts warn this is
wishful thinking given shrinking EU consumption and mounting global competition.
๐ ICE Sugar No.5 โ Closing Summary (22.05.2025)
(Exchange rate: 1 USD = 0.93 EUR)
๐ช๐บ EU Market Snapshot โ Price Optimism vs. Reality
๐ Spot demand in the EU remains stagnant.๐
FCA prices remain stuck at EUR 0.56โ0.59/kg.๐ช๐บ Producers in several EU countries are now
pushing for EUR 0.62โ0.65/kg for the 2025/26 campaign.๐
Market analysts dismiss this optimism:
"EU sugar consumption is falling, global competition is intensifying. Where should the momentum for a price rally come from? Only sustained drought in Europe could push prices higher."๐ฆ๏ธ Some traders cite weather risks as the only possible catalyst for price recovery.
๐๏ธ Retail Sugar Prices (1 kg, verified 22.05.2025)
๐ Price Comparison Table
๐ฎ 3-Day Forecast (23โ25 May 2025)
๐
Outlook:Without weather shocks or sudden buying interest, prices are expected to drift lower.
๐งญ Conclusion & Strategy
๐ ICE futures extend their slide as fundamental demand remains weak.๐ง EU spot pricing is disconnected from global signals.๐ฑ Weather is now the only wild card โ prolonged dryness could trigger support.
๐ Recommendations:
- ๐ Buyers: Wait and negotiate below EUR 0.57/kg โ the market favours you.
- ๐ฆ Sellers: Curb campaign expectations โ higher prices lack justification.
- ๐ Traders: Short-side still dominant โ technical support near USD 480/t.
๐
Summary:No fuel for a sustainable uptrend. EU dreams of price rallies face hard global realities โ only the weather could help.
