Raw sugar futures hit 16-month high on supply worries

Raw sugar futures on ICE hit a 16-month high on Wednesday, driven by supply concerns in India and harvest challenges in Brazil, while arabica coffee fell to a five-week low. Raw sugar closed up 0.34 cents, or 1.9%, at 18.70 cents per pound after rising 3.1% on Tuesday, reaching its highest level since April 2025 at 18.77 cents during the session. Tight supplies and strong domestic prices in India, the world's largest sugar consumer, contributed to the price increase, while lower production expectations in the European Union and Thailand also supported the market. In Brazil, the world's largest sugar producer, at least 50 millimeters of rain is expected over the next 10 days in the key sugarcane district of Ribeirao Preto, which is expected to halt harvesting work. White sugar rose 1% to $539.20 per metric ton. The price movements reflect ongoing global supply constraints affecting the sugar market.