Sugar futures in the US rose above 14.7 cents per pound, reaching the highest since late January, as the market remains sensitive to oil price movements. Higher oil prices amid the Middle East crisis make ethanol production more attractive, prompting mills to divert more sugarcane to biofuel at the expense of sugar output. Ethanol production in top producer Brazil is forecast to rise by some 4 billion liters in the 2026/27 season from a year earlier, which would set a record level, according to industry sources. Meanwhile, abundant supply prospects, primarily from India and Brazil, continued to shape market fundamentals. Recent Reuters forecasts indicated a shift from a surplus of 1.39 million tons in 2025/26 to a 1.5 million ton deficit in 2026/27, amid anticipated changes in how India and Brazil allocate sugarcane between sugar and ethanol production.
