# Global sugar supply and price fluctuations

> Live situation record from CLSTR: https://clstr.news/situations/global-sugar-supply-and-price-fluctuations
> Updated: 2026-09-09T12:15:04.000Z. Sources: 10. Developments: 3.

Global sugar prices have experienced a recovery following a ten-month period of low valuations. In mid-August, demerara sugar contracts on the New York exchange rose by 14.7% to 16.61 cents per pound, driven by reduced production in Brazil’s Center-South region and weather-related impacts on European beet sugar crops. By late August, analysts forecasted a global sugar deficit for the 2026/27 and 2027/28 seasons. This shortage is attributed to shrinking sugarcane and sugar beet cultivation, with the El Niño weather pattern identified as a primary risk factor for production in India, Thailand, and the European Union. In Europe, production is expected to hit its lowest level in a decade, with the European Commission’s MARS monitoring service estimating a 7% drop in sugar beet yields compared to the previous year. Heatwaves and droughts in regions such as France and Germany have further threatened harvests. Additional supply pressures include Brazil’s potential shift toward ethanol production due to rising oil prices, with the Conab agency lowering production forecasts as mills divert sugarcane. Meanwhile, India is grappling with poor harvests and rising domestic prices, prompting the government to authorize duty-free imports of up to one million tons of raw sugar to stabilize availability. While global futures are trading near recent highs, retail prices in some regions, such as Greece, have remained relatively stable. As of September 2026, global raw sugar futures have reached a 17-month high, with prices increasing approximately 30% since the start of the year. The International Sugar Organization estimates a potential global deficit of 260,000 tons in the upcoming season. Supply disruptions persist as heavy rainfall in Brazil’s Center-South region hinders sugarcane processing, while India faces monsoon levels roughly 15% below normal.

## Timeline

### 2026-09-09: Sugar prices hit 17-month high amid global supply concerns

Global sugar prices have hit a 17-month high due to supply concerns in Brazil and India, with a potential global deficit expected in the upcoming season.

2 sources. https://clstr.news/cluster/sugar-prices-hit-17-month-high-amid-global-supply-concerns

### 2026-08-25: Global sugar supply faces deficit amid weather and production shifts

Global sugar supplies are tightening due to El Niño-driven crop failures in India and Europe, alongside increased ethanol production in Brazil, leading to forecasts of a significant market deficit.

4 sources. https://clstr.news/cluster/global-sugar-supply-concerns-rise-amid-production-deficits

### 2026-08-16: Sugar prices rise globally as Portuguese fuel costs increase

Rising international sugar prices offer Brazilian mills export opportunities, while Portuguese fuel costs are set to increase following market volatility and regulatory decisions.

4 sources. https://clstr.news/cluster/sugar-prices-rise-globally-as-portuguese-fuel-costs-increase

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Cite as: Global sugar supply and price fluctuations. CLSTR, https://clstr.news/situations/global-sugar-supply-and-price-fluctuations