Sugar Market Slides Again โ Front Month Drops Below USD 470/t
On 23 June 2025, ICE Sugar No.5 futures fell further after Friday's pullback. The
August 2025 contract lost 1.63% to USD 467.50/t (EUR 434.78/t). Despite firm prices in later contracts, front-month pressure reflects a continued lack of physical buying interest and ample global supply. Spot prices in the EU remain soft, and retail prices show no signs of reaction.
๐ ICE Sugar No.5 โ Closing Summary (23.06.2025)
(Exchange rate: 1 USD = 0.93 EUR)
๐ช๐บ EU Spot Market โ Unchanged at Weak Levels
๐ EU FCA spot prices remain at
EUR 0.50โ0.52/kg, unchanged from last week.๐ฆ Buyers remain passive, and sellers report
ongoing competition from third-country imports.๐ง Some European refiners have started
cutting output expectations for Q4 2025, citing weak margins and energy costs.
๐๏ธ Retail Sugar Prices (1 kg, verified 23.06.2025)
๐ Market Comparison Table
๐ Market Drivers
- ๐ Follow-through selling after last weekโs rally rejection
- ๐พ Brazil: Strong harvests, no weather disruption
- ๐ฑ Strong USD limits sugar purchasing in key emerging markets
- โ ๏ธ Lack of fresh bullish narrative or trade policy movement
๐ฎ 3-Day Forecast (24โ26 June 2025)
๐
Outlook:A weak tone will persist unless supply disruptions or macro shifts provide a new direction.
๐งญ Conclusion & Strategy
๐ Prices continue to correct after rally rejection๐ฆ EU physical demand is absent โ spot and retail prices are stuck๐ง The futures market is disconnected from the consumer-facing sector
๐ Recommendations:
- ๐ Buyers: Wait for spot offers below EUR 0.51/kg โ sellers may get more flexible
- ๐ฆ Sellers: Focus on securing volumes for Q3 โ avoid holding out for recovery
- ๐ Traders: Momentum bearish โ watch for reaction near USD 460/t support
๐
Summary:ICE Sugar is weakening again as speculative optimism fades. Fundamentals continue to anchor the market, and no bullish signals have emerged.
