World Market Sugar Price Collapse Spills into American Domestic Futures

The collapse of world sugar prices has affected American domestic futures, particularly №16 domestic raw sugar futures, which have experienced a significant decline. Buyers are anticipating weakness in cash prices, but cash sellers have been cautious about reducing prices due to concerns about the recent fund sell-off in №11 (world) raw sugar futures. The decline in raw sugar futures is linked to record-high sugar production in Brazil. Sales of bulk refined sugar were slow in the week ended December 22, reflecting price weakness in refined cane sugar values. The market is currently uncertain, with buyers waiting to see if there will be more weakness, and sellers hesitant to reduce prices. US bulk refined cane sugar prices for calendar 2024 were offered at 62¢ a lb in Northeast and West Coast, down 1¢ from a week earlier, while bulk beet sugar prices for 2024 were unchanged at 57¢ to 59¢ a lb f.o.b. Midwest. The pace of deliveries for 2023–24 remains a concern, with most sellers indicating slower-than-expected shipments. Some sellers are allowing buyers to roll undelivered 2023 sugar contracts into 2024, but this would add to buyers’ 2024 commitments. Corn sweetener contracting for 2024 is mostly complete at steady to lower prices than 2023 contracted values.

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