Sugar prices rise amid El Niño and harvest concerns

Global sugar prices have risen due to concerns regarding the El Niño phenomenon and harvest disruptions in major producing regions. In New York, raw sugar futures for March delivery saw increases, with prices reaching levels not seen in nearly two years.

In Brazil, persistent rainfall in the Center-South region has delayed harvesting and interrupted milling operations, potentially reducing production below previous estimates of 39 million tonnes. Additionally, the International Sugar Organization (ISO) noted that a poor monsoon season in India is expected to have negative consequences for production in the 2026/27 and 2027/28 cycles.

Market volatility has also been driven by speculative activity related to climate risks. While the ISO anticipates sufficient supply in the short term, the combination of weather-related supply constraints in Brazil and India continues to exert upward pressure on global commodity prices.