Raw sugar futures on the ICE exchange climbed to their highest level in over two weeks on Monday, supported by a slowdown in selling from leading producer Brazil and a strong rally in crude oil prices. During the session, raw sugar rose by 1.4% to 14.12 cents per pound, after touching an intraday high of 14.15 cents per pound — the strongest level since April 9. The market had already recorded a solid gain of 4.6% in the previous week, reflecting improving sentiment among traders. Market analysts noted that the pace of origin selling, particularly from Brazil, appears to have eased. According to industry expert Michael McDougall, sellers are now holding back supplies in anticipation of better price levels, which has contributed to the upward momentum in sugar prices.
At the same time, rising crude oil prices have provided additional support to the market. Higher energy prices often encourage Brazilian mills to divert more sugarcane towards ethanol production instead of sugar, tightening global sugar supply and pushing prices higher. The bullish outlook for ethanol in Brazil was further strengthened by two key developments. State-run oil company Petrobras announced an 18% increase in jet fuel prices effective May 1, while the Brazilian government is considering raising the ethanol blending ratio in petrol from 30% to 32%.
Both measures are expected to boost ethanol demand and influence sugar production decisions. Meanwhile, white sugar prices also moved higher, gaining 0.6% to settle at USD 437.70 per metric tonne. Overall, the combination of reduced Brazilian selling and firm energy markets has created a supportive environment for sugar prices, with market participants closely watching further developments in both oil and ethanol policies.
