Sugar Market and Sugar Industry: Overview and Trends - Incubator

March futures for world sugar No. 11 dropped by 1.91% in New York, while December contracts for London sugar ICE No. 5 decreased by 1.72%.

The CEO of Raizen plans to increase sugar production due to less profitable ethanol production from corn in Brazil.

From 23.06.2025 to 27.06.2025, 5,780 tons of white sugar were sold on the NTB and SPbMTSB exchanges at a price ranging from 53,500 to 60,900 rubles/ton. Sales volumes: Central Federal District (ЦФО) – 2,640 tons, Southern Federal District (ЮФО) – 920 tons, Northwestern Federal District (ПФО) – 660 tons, North Caucasian Federal District (СФО) – 60 tons, Ural Federal District (УрФО) – 1,400 tons, Siberian Federal District (СКФО) – 100 tons.

Forecasts of low sugar production levels in Cuba due to the economic crisis have caused difficulties for rum producers. Resumption of work is expected at only one of the 25 plants, and production volume will be significantly lower than the 2019 level. The decline began after the collapse of the Soviet Union.

Prices for sugar have decreased: July contracts on NY ICE have dropped to 16.04 ¢/pound, and August contracts on ICE London have decreased to $467.50 per ton due to falling oil prices. Oil has lost 7%, reducing ethanol production and increasing sugar supply.

In 2025, in Tatarstan, 283 thousand tons of grain seeds were used for sowing. The usage of domestic seeds has been increased in accordance with the Doctrine of Food Security. In particular, Russian seeds are actively used for sowing sugar beets.

The futures prices for sugar No. 11 in New York have decreased to 16.48 cents per pound (-1.14%), while the contracts for white sugar No. 5 in London have fallen to $467.80 per ton (-0.97%).

The reason for this is the increased estimate of sugar surplus in the global market to 4.2 million tons, which has reduced demand and prices.

At the National Commodity Exchange, 2 contracts of white sugar were sold, each for 60 tons, at an average price of 51,000 rubles per ton.

In the South, the maximum price is 51,000 rubles.

The Tbilisi factory sold 60 tons at 51,000 rubles per ton.

The Central Bank of Russia has reduced the key interest rate to 20% per annum. Inflation has slowed down, and the economy is recovering.

The Central Bank aims to bring inflation back to 4%. The labor market maintains low unemployment. External factors may affect inflation.

The next Central Bank meeting is scheduled for July 25th.

According to Barchart, prices for May world sugar No. 11 in New York decreased by -0.61 (20.53; -2.84%), while prices for London white sugar ICE No. 5 dropped by -4.40 (609.00; -0.70%). In New York, sugar prices reached a monthly minimum, while in London they hit a three-week low.

Production in Thailand exceeded forecasts, which influenced the price decrease.

In early 2025, Russia increased molasses exports by 2.1 times compared to the previous year, earning $15 million. Turkey was the largest buyer, purchasing over 100,000 tons. The export of beet pulp also grew by 7%, with Morocco becoming the main consumer.

The company from Rostov filed a lawsuit in the Arbitration Court of the Tambov Region for 266.3 million rubles against the company "South-Eastern Agrogroup". The reason - a contract for the transportation of goods.

The revenue and profit of the plaintiff for the year 2024 are 287 million rubles and 665 thousand rubles. The defendant grows sugar beets, with revenue and profit for the year 2024 amounting to 17 billion and 7.3 billion rubles.

Prices for sugar have risen following recent losses: the May futures contract for sugar No. 11 in New York added +0.45%, while the white sugar contract in London increased by +0.59%. Conab reduced its sugar production forecast in Brazil for the current financial year by -2.6%.