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Insight Focus
The US cash sugar market held steady, focused on harvest activity. Global futures weakness and ample supply capped domestic cane and beet values, with buyers adding coverage cautiously. Harvests advanced across major regions despite missing USDA data, while 2026 corn sweetener negotiations continued.
US Sugar Prices Hold Despite Global Futures Drop
The cash sugar market continued to focus on harvest activities during the week ending October 31. Prices were unchanged, but traders were closely monitoring the sharp decline in No. 11 world raw sugar futures prices, which plunged to five-year lows.
In addition to ample production, part of the pressure on global sugar prices has come from the decision by top sugar-producing countries to use grain instead of sugar to produce ethanol.
Typically, the global futures price has minimal direct influence on domestic raw sugar prices, as the No. 11 price does not reflect additional fees such as transportation and tariff costs. But the two are aligned with price direction, and ideas were that domestic cash prices, especially domestic cane sugar values, may be pressured lower if the world futures prices continue to tumble.
Current US cane sugar prices have remained mostly steady for the past four and a half months. The persistent decline in world cane sugar prices over that period has kept a ceiling over domestic values, and that fixed level also has been providing a ceiling to domestic beet sugar prices, which have adjusted higher in recent months. But if domestic cane sugar values start to slide, that likely will generate some spillover pressure for domestic beet sugar prices, as sellers work to stay ahead of attractive offers from international markets.
Buyers were watching both the market and their inventories. Some customers still were not fully covered for the current year, as several had unused contracts that carried over into the new season. Users who had secured only partial coverage earlier in the year were now coming back to add more coverage, but many continued to buy only in small volumes as they assessed their needs and the price environment.
Harvest Advance as Federal Data Remains Unavailable
Harvests for both the sugar beet and sugar cane crops were progressing, according to trade sources. Official data profiling harvest progress from the USDA remained unavailable due to the partial shutdown of the US federal government.
Processors in Michigan were in full harvest mode, with about 36% of the crop collected by October 26. Previously, because of warm weather, growers were harvesting only enough sugar beets to feed the mills, but a recent drop in nighttime temperatures created a suitable environment for outdoor beet piling to commence for long-term storage.
The beet harvest in the Red River Valley was wrapping up. Sugar cane harvests in Louisiana and Florida also advanced. The Louisiana harvest was estimated at around 30% complete and was expected to conclude in January, with the Florida harvest finishing in March or later.
Trade sources said deliveries continued to sustain a strong but typical pace for the time of year.
Negotiations for 2026 annual corn sweetener contracts were ongoing.
