US Cash Sugar Market Quiet as Forward Prices Edge Higher

Insight Focus

The US cash sugar market remained steady as 2026–27 prices firmed. Cash sugar was steady, while 2026–27 cane prices rose on firmer demand and freight costs. USDA mixed revisions lifted Florida cane sugar but cut total 2025–26 output on weaker beet sugar. Beet planting was delayed by Midwest rains as acreage fell further, while corn sweeteners stayed stable.

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Cash Sugar Market Steady as 2026–27 Prices Edge Higher

Activity in the cash sugar market was slow but steady this week. Conversations between buyers and sellers were advancing. Spot and forward prices were mostly steady, while 2026-27 cane sugar prices stepped higher.

Prices for 2026-27 Southeast and Gulf cane sugar were 49c to 50c/lb FOB, up 1c/lb from the prior week. Subtle signs of strengthening demand, along with firmer fuel surcharges and transportation rates, were supportive. Ideas were that buyers may move forward with extending contracts to avoid higher fuel and freight expenses, which many believed may continue to climb as the outlook for any resolution between the US and Iran remains uncertain.

Also supportive was the fact that the sugar cane crop in Florida was still being assessed after a late-February freeze caused cane damage. In the April 9 WASDE report, the USDA surprised several market participants by raising the state’s cane sugar output to 1.97 million short tons (1.79 million tonnes), up 1% from 1.956 million short tons (1.774 million tonnes) in the March report.

Source: USDA

“I thought that the previous move (lowering Florida’s cane sugar production to 1.956 million short tons from 2.082 million short tons) was probably more in line, but they added 20,000 (short tons) back,” one trade source said, adding it was still too early to fully assess the damage and impact on the crop.

Also included in the April WASDE was the USDA’s forecast for 2025-26 US sugar production at 9.268 million short tons, down 12,840 short tons from March, based on beet sugar at 5.06 million short tons (down 33,000 short tons) and cane sugar at 4.207 million short tons (up 20,000 short tons).

The USDA said the decrease in beet sugar was “based on a small downward revision to sucrose recovery and an increase in beet pile shrink estimated by processors, somewhat offset by an increase in sugar from desugared molasses.” If realised, 2025-26 cane sugar production would be a record high, and total sugar production would be the fourth largest on record.

Source: USDA

Wet Weather Delays Sugar Beet Planting as Acreage Declines

Planting of the 2026 sugar beet crop was underway in several states, but heavy rains from spring storms appeared across the Midwest, delaying progress.

In the March 31 Prospective Plantings report, the USDA said farmers intend to plant 1.063 million acres of sugar beets in 2026 (2026-27 sugar supply), down 16,000 acres (1.5%) from 2025 and the lowest since 1969.

Sugar beet area has declined for six consecutive years. Smaller acreage is expected in Minnesota, Idaho, Montana and Wyoming. Larger areas are forecast for North Dakota, Michigan, Nebraska and Colorado. The loss equates to roughly 75,000 short tons of beet sugar production.