ARTICLE 4 #MarketUpdate

Sugar futures extended their rally on Tuesday as traders continued to cover short positions amid tightening global supply concerns. Prices rose for a third consecutive session, supported by lower production forecasts from major exporters such as Brazil and India.

In a surprising turn for the agricultural sector, both corn and soybean have seen a bumper arrival across major mandis this week. Favorable weather conditions and higher-than-expected yields have led to record supplies, pushing prices to their lowest levels in recent months.

Sugar prices saw a slight uptick on Monday as market sentiment strengthened amid reports that the Indian government may soon raise ethanol procurement prices. Traders noted that even a modest increase in ethanol prices could encourage sugar mills to divert more cane juice and molasses toward ethanol production, potentially tightening sugar supply in the market.