REPORTS

Barchart - Sugar prices recovered from early losses on Tuesday and moved sharply higher after a +1% rally in crude oil prices (CLX25) sparked short covering in sugar futures. Stronger crude prices benefit ethanol prices and could prompt global sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.

Sugar price initially moved lower on Tuesday,  NY sugar posting a 4.25-year nearest-futures low and London sugar posting a new 4-year low. Sugar prices have been declining over the past six months, driven by indications of an abundant global sugar supply. StoneX on Tuesday projected a global sugar surplus of +2.8 MMT for the upcoming 2025/26 season, switching from a deficit of -4.7 MMT in the 2024/25 season.