Rising Crude Oil Prices Support Ethanol and Sugar Prices
Crude oil prices rose over 2%, supporting ethanol production and prompting sugar mills to potentially shift cane crushing from sugar to ethanol, reducing supply. This has led to a short covering rally in sugar futures with July NY world sugar up +0.95% and Aug London ICE white sugar rising by +0.68%. The International Sugar Organization (ISO) forecasts record global production for 2025/26 at 182 MMT, but anticipates a deficit of 262,000 MT in the following year due to El Niño impacts.
Topics: crude oil ethanol global supply sugar prices