Insight Focus
The US cash sugar market saw increased activity last week. Prices for 2026-27 stabilised and cane sugar values firmed amid concerns over the 2026 crop and potential additional duties on high-tier sugar imports following a complaint by the American Sugar Alliance. Meanwhile, USDA reports showed accelerated 2026 sugar beet planting and a quiet corn sweetener market.
Renewed Cash Sugar Market Activity
Activity in the cash sugar market ramped up this week. Prices for 2026-27 were unchanged but had quickly developed a firm tone, with offers mostly leaning toward the high side of the posted range. Beet sugar spot values were steady, while cane sugar values in the Gulf and Southeast regions firmed from the low side and reflected 2027 prices.
“Everyone that was sitting back is now coming forward,” one seller said. Ideas were that concerns about the 2026 crop, given recent weather reports and the reduction in the 2025-26 sugar production forecast by the USDA in the May 12 World Agricultural Supply and Demand Estimates (WASDE) report, may have spurred some activity. But the likely stronger prod was discussion about the potential enforcement of additional duties on high-tier (over-quota) sugar imports.
Additional Duties in Spotlight
On April 15, the American Sugar Alliance (ASA) filed a formal complaint with the US Trade Representative (USTR) office and requested that the US government take stronger measures to guard against the heavy import flow of foreign-produced sugar.
In the April WASDE, which was released just before the ASA filed its complaint, the USDA had raised its forecast of 2025-26 high-tier sugar imports by 5% from March to 642,000 tons. In the May WASDE, just one month later, the USDA raised it again to 817,000 tons, up 21% from the April outlook.
Source: USDA
In its complaint, the ASA requested that the USTR enforce its authorities granted under Section 301 to restrict high-tier imports by imposing additional duties, as the tariff rates that were established 26 years ago and remain the US government’s current means to control the amount of over-quota sugar imports are no longer effective and have allowed foreign suppliers to steal US market share.
The USTR is currently conducting a Section 301 investigation that began in March to determine if certain countries are overproducing commodities due to government subsidisation. Sugar was not initially a part of the investigation, but the ASA has urged the USTR to include it as part of the broader inquiry. It is expected that the USTR will complete its investigation and propose remedies sometime this summer.
Planting Pace Accelerates
Growers made great strides in improving the planting pace of the 2026 US sugar beet crop. In its weekly Crop Progress report, the USDA said 98% of the sugar beet crop in the four major reporting states (Idaho, Michigan, Minnesota and North Dakota) were seeded by May 17, just shy of 99% as the year-ago pace, but well ahead of 84% as the five-year average for the date.
The corn sweetener market was quiet. Traders anticipated interest in 2027 annual contracting would resurface in August.
