Date: November 4, 2025 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.
Analysts noted that speculative short covering played a key role in driving the market higher, following weeks of heavy selling pressure. Weather disruptions in key growing regions and rising energy costs have further strengthened bullish sentiment.
Market participants are now watching for updates on global output estimates and potential policy changes from top producers. A sustained rally could lead to higher costs for food and beverage manufacturers, adding inflationary pressure across several markets.
