Sugar Jumps 21.5% in August as EU Crop Losses and India Imports Tighten Supply
Updated
Updated · CNBC · Sep 6
Sugar Jumps 21.5% in August as EU Crop Losses and India Imports Tighten Supply
1 articles · Updated · CNBC · Sep 6
Summary
August sugar prices surged 21.5%—the biggest monthly gain since October 2010—lifting the sweetener about 20% in 2026, ahead of the S&P 500’s nearly 13% rise.
A 19% drop in EU sugar output to 13.4 million metric tons for 2026/27, lower Brazil production and India’s 1 million-ton duty-free raw sugar import plan have deepened fears of a global shortage.
Deficit estimates are moving higher, with Citi projecting a 1.3 million-ton world shortfall and Green Pool 3.2 million tons; Citi raised its three-month target to 19 cents a pound.
El Niño is the main forward risk because Brazil, India and Thailand account for about 70% of global sugar exports, while oil above $90 a barrel is also pushing Brazilian mills toward ethanol over sugar.