ICE Sugar No. 5 Prices Rebound: Strong Gains for Short-Term Contracts
On January 22, 2025, ICE Sugar No. 5 prices significantly recovered for short-term contracts, while long-term contracts exhibited minimal changes. Notably, the March and May 2025 contracts experienced the largest price increases.
Summary of Price Movements (Closing Prices in EUR/t):
- March 2025: €439.39 (+€10.29, +2.35%)
- May 2025: €438.01 (+€8.46, +1.93%)
- August 2025: €428.54 (+€7.08, +1.65%)
- October 2025: €426.51 (+€5.61, +1.32%)
- December 2025: €429.82 (+€4.97, +1.16%)
Long-Term Contracts (2026-2027):
- March 2026: €434.61 (+€3.96, +0.91%)
- May 2026: €437.18 (+€2.67, +0.61%)
- August 2026: €438.75 (+€1.47, +0.34%)
- October 2026: €438.47 (+€0.55, +0.13%)
- December 2026: €439.85 (+€0.37, +0.08%)
- March 2027: €441.88 (+€0.37, +0.08%)
- May 2027: €440.13 (+€0.37, +0.08%)
- August 2027: €439.94 (+€0.37, +0.08%)
- October 2027: €439.30 (+€0.37, +0.08%)
Market Developments and Key Factors
- Strong Recovery for Short-Term Contracts (2025):
- Short-term contracts for 2025, particularly March and May, showed notable price increases of +2.35% and +1.93%, respectively. This indicates stronger demand or adjustments addressing short-term market uncertainties.
- Stability in Long-Term Contracts (2026-2027):
- Long-term contracts for 2026 and 2027 displayed minimal changes, with gains ranging from +0.08% to +0.91%, suggesting stable market conditions for future deliveries.
- Trading Volume:
- The highest trading volumes were recorded for short-term contracts:
- March 2025: 8,006 units.
- May 2025: 5,040 units.
- Long-term contracts experienced lower trading volumes, reflecting cautious market activity.
- The highest trading volumes were recorded for short-term contracts:
Conclusion
ICE Sugar No. 5 prices rebounded significantly for short-term contracts, particularly for 2025, while long-term contracts remained steady. Market participants should monitor short-term developments closely, as these price increases may reflect demand shifts or supply dynamics adjustments. Despite this recovery, the sugar market remains volatile, with further fluctuations expected in the coming weeks.