Sugar prices rose 21% in August, recording the highest monthly appreciation since October 2010, when they increased 24%, according to CNBC. This rise was also reflected in the Food Price Index of the United Nations Food and Agriculture Organization (FAO).
The price increase reflects expectations of lower sugar beet yields in the European Union, adverse weather conditions, concerns about the impact of El Niño on production prospects in major Asian producing countries, lower sugar production in Brazil and India's announcement of duty-free raw sugar imports.
William Osnato, director of commodity data research and analysis at Barchart, cited by CNBC, said the rise reflects a shift in expectations about global supply, with damage to the European sugar beet harvest being one of the factors that contributed most to this appreciation.
The European Commission projects a 19% drop in sugar production to 13.4 million metric tons in the 2026/27 marketing year, compared to 16.6 million tons in 2025/26. Citi forecasts a global deficit of 1.3 million metric tons, while Green Pool Commodity Specialists anticipates a deficit of 3.2 million metric tons. The El Niño climate phenomenon is another factor that may intensify pressure on sugar prices.
