Slow US Sugar Sales Persist as Buyers Hesitate

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Insight Focus

Sugar sales remained slow amid weak market demand. At a recent Seminar, sellers lagged in contracting 2025-26 volumes, while buyers showed caution and favoured partial coverage. Improving crop conditions and rising global production forecasts kept pressure on raw sugar futures and overall market sentiment.

Sluggish Sugar Sales Amid Buyer Hesitation

Spot and forward sales of bulk refined sugar were slow. Prices were unchanged, with a weak tone. Raw sugar futures prices also weakened.

Spot beet sugar could be bought around 35c/lb FOB Midwest or slightly lower, but sales were minimal as users either needed no additional sugar or had excess contracted sugar due to slow sales of their own manufactured food products. It is expected that most beet processors will carry over sugar from the 2024 beet crop (2024-25 sugar production) into the 2025-26 marketing year, as only one processor is sold out for the current year.

Forward sales of beet and refined cane sugar for 2025-26 were slow. Beet sugar processors sought to maintain current price levels, which they say are at or below the cost of production. There were indications that some cane refining operations were temporarily curtailed amid the current market slump.

Slow Sales Dominate Conversations

The weak sugar market was a topic at the recent Sosland Purchasing Seminar in Kansas City. A larger-than-usual number of cane and mostly beet sugar sellers were in attendance. Most had work to do for 2025-26, with estimates indicating they had sold only 50% to 60% of potential 2025-26 production—well behind the pace of the past two years but not out of line with historical averages.

Differences this year include the potential carryover from 2024-25 and indications of waning sugar demand. Some business was completed at the Purchasing Seminar, but there was no indication of a large jump in sales.

At the same time, several users at the Purchasing Seminar indicated they were likely to add sugar to their 2025-26 books by the end of June. Coverage for next year ranged from zero to 100%. While some buyers indicated they were ready to book for the entire year, several said they would add only partial coverage and supplement from the spot market as they became more certain about demand for their own products.

Delayed buying carries added risk (mainly weather-related) as the year progresses, amid the idea that there is limited upside to sugar prices—as well as limited downside.

Production Forecasts Pressure Prices

Good-to-excellent sugar beet crop ratings as of June 8 were mostly improved from the previous week. Most trade sources viewed beet crops as average or slightly above average but not bumper. The Louisiana sugar cane crop improved and was rated the highest of the season.

Spot world raw sugar futures were at four-year lows on forecasts of higher sugar production into 2025-26, mainly in India and Thailand. Domestic raw sugar futures followed world raws lower.

The USDA’s June WASDE report report lowered 2024-25 sugar deliveries for human consumption for the second straight month, confirming anecdotal reports of weak demand.