Sugar prices rise globally as Portuguese fuel costs increase

Sugar prices in the international market have seen a rapid recovery in August, following ten months of low valuations that impacted producer profitability. The New York exchange saw demerara sugar contracts rise by 14.7% to 16.61 cents per pound. This upward trend is driven by reduced production in Brazil’s Center-South region, global supply deficit revisions, and weather-related impacts on beet sugar crops in Europe and potential supply reductions in India due to El Niño.

In Portugal, fuel prices for diesel and 95 gasoline are projected to rise, effectively reversing previous weekly decreases. Diesel is expected to increase by approximately ten cents per liter, while 95 gasoline is projected to rise by nine cents. These fluctuations are influenced by geopolitical volatility in the Middle East. Despite the price increases, the energy regulator ERSE has declined to implement fixed margins, stating that prices are adjusting to market conditions without persistent deviations.

While the sugar price recovery offers a window for mills to hedge exports for the 2026/27 and 2027/28 seasons, analysts note that a weak physical market and discounts at the Port of Santos may limit further gains.