Sugar Futures Edges Higher on USDA Projection

Sugar futures edged above 15.8 cents per pound as the USDA released its latest supply and demand report.

For 2024/25, US sugar supply slipped to 14.716 million short tons, as a drop in beet sugar production outweighed higher imports.

Beet sugar output fell 83,500 STRV due to a smaller-than-expected crop, while re-export and high-tier imports rose slightly.

With sugar use unchanged, ending stocks increased modestly.

Looking to 2025/26, US sugar supply is projected to decline 184,000 STRV, mainly from lower imports from Mexico, despite modest gains in beet and cane sugar production driven by higher yields in some regions.

The Department of Commerce will use the outlook to set Mexico’s export limit starting October 1, projected at 219,638 STRV. Overall, the report points to tighter US sugar supplies, with production and import adjustments keeping the market balanced.