Sugar Prices Continue to Rise – Signs of Stronger Demand

“Sugar Market Report: Prices Continue to Rise – Signs of Stronger Demand”

Summary of Closing Prices on January 24, 2025 (ICE Sugar No. 5)

The sugar market shows rising prices, indicating a recovery in global demand. The closing prices for ICE Sugar No. 5 on January 24, 2025, highlight a clear upward trend:

This upward movement across all contracts reflects growing market dynamics. Short-term contracts, particularly for March and May 2025, show stronger gains.

Reasons for the Price Increase

1. Global Demand Recovery:
   Rising prices suggest that market participants are increasingly securing positions. Seasonal factors, such as Easter preparations, play a significant role.
2. Import Constraints:
   Despite high stock levels in the EU, the global market is increasingly impacted by export and import restrictions, adding upward pressure to prices worldwide.
3. Consolidation After Weakness:
   Following months of declining prices, the current movement signals stabilization and recovery in the market.

EU Pricing Situation

In the EU, sugar prices remain between €0.52/kg and €0.54/kg FCA, depending on quality and order size. While global demand is strengthening, EU demand is still subdued. This could change soon, as buyers with open positions may be forced to purchase at higher prices.

Market Outlook

1. Short-Term Price Increases:
   With rising global prices, EU prices are likely to follow. Market participants should closely monitor developments in the coming weeks.
2. Seasonal Demand:
   The Easter season is expected to drive short-term demand, potentially pushing higher prices.
3. Long-Term Trends:
   Recent price movements suggest the market is recovering from its prolonged weakness, indicating a potential turning point.

Conclusion

The sugar market is showing signs of significant recovery, both globally and in Europe. While EU prices remain low, rising global demand could soon impact European pricing. Market participants should closely observe these developments and factor potential price increases into their strategies.

🔹 For logged-out users (not logged in)

Please register for a FREE membership to read this report.

All reports on CMB News are free to read, but you need to create a free account first.
As a registered Free Member, you will get instant access to:
• Daily market reports and news updates
• Price trends for food and feed ingredients
• Regional insights from Europe, Asia, and the USA

For full access to charts, statistics, and detailed price analyses, you can upgrade anytime to a BASIC membership for only €4.99/month.

Register now for free to continue reading.

Click here to reach our trading platform CMBroker