Sugar Market Stabilises โ Modest Rebound After Six-Day Slide
On 29 May 2025, ICE Sugar No.5 futures posted a
mild rebound, with the
August 2025 contract rising 0.46% to USD 473.60/t (EUR 440.45/t). After six consecutive losing sessions, technical buying and short-covering lifted prices slightly. However, the
fundamental outlook remains bearish, and EU spot demand continues to
show no signs of recovery.
๐ ICE Sugar No.5 โ Closing Summary (29.05.2025)
(Exchange rate: 1 USD = 0.93 EUR)
๐ช๐บ EU Market Snapshot โ Buyers Remain Absent
๐
FCA spot prices remain soft at
EUR 0.54โ0.56/kg, with occasional offers seen at
EUR 0.53/kg FCA, especially for larger lots.๐ฆ Several traders report
ongoing pressure from excess stocks and
low industrial absorption.๐ European refiners continue to resist price reductions, but sentiment is weakening.
๐๏ธ Retail Sugar Prices (1 kg, verified 29.05.2025)
๐ Price Comparison Table
๐ Fundamental Outlook
๐พ Brazilโs and Indiaโs crop outlooks remain favourable โ
no production concerns reported.๐ข Export flows from Brazil continue to pressure global prices.๐ Unless
EU consumption improves or
logistical constraints emerge, the upside is limited.
๐ฎ 3-Day Forecast (30 May โ 1 June 2025)
๐
Outlook:The market may stabilise short term, but fundamental pressure remains.
๐งญ Conclusion & Strategy
โ
Sugar futures showed signs of stabilisation after six red sessions.๐ฆ EU spot remains weak, and buyers continue to delay purchases.๐ง Without new demand or weather risks, the upside remains capped.
๐ Recommendations:
- ๐ Buyers: Continue cautious approach โ expect more flexibility in offers below EUR 0.55/kg.
- ๐ฆ Sellers: Hedge bounce carefully โ avoid holding out for unrealistic price levels.
- ๐ Traders: Technical recovery possible โ but likely limited to USD 478โ480/t resistance.
๐
Summary:The sugar market pauses its decline, but lacks any fundamental fuel for a sustainable rally.
