Source: Ukragroconsult (Ukraine)
Sugar prices war surge to a five-month high. On Thursday, March 19, raw sugar futures reached this peak. Moreover, speculators grew more optimistic. Specifically, the escalation of the US-Israel war against Iran spurred oil prices. Consequently, oil reached a three-year high.
Sugar Prices War Surge: Brazil Production Impact
Rising energy prices could encourage sugar producers in Brazil. Furthermore, they may increase ethanol production. Additionally, they might reduce sugar production. Ethanol is a sugarcane-based biofuel.
Raw Sugar Price Movement
The price of raw sugar rose 3.7%. Specifically, it reached 15.34 cents per pound. Moreover, it reached its highest level since mid-October 2025 at 15.49 cents per pound.
Iran attacked key energy facilities in the Middle East. This occurred following Israel’s strike on its giant South Pars gas field. Furthermore, this was a significant sign of the escalation of the war.
Sugar prices war surge as speculators shift positions. Specifically, sugar speculators are replacing their short positions with long ones. Essentially, they are betting on rising prices. Alberto Peixoto, director of AP Commodities, noted this trend.
However, he added that “producer sales exceed purchases according to specifications.” Consequently, this signals a limit on potential price increases.
White Sugar Price Increase
The price of white sugar increased by 3.1%. Specifically, it reached $450.60 per tonne. Moreover, it reached its highest level since early October last year at $455.80 per tonne.
