“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:
| Contract | Closing Price (EUR/t) | Change (EUR) | % Change |
|---|---|---|---|
| March 2025 | 458.34 | +10.40 | +2.27% |
| May 2025 | 452.18 | +8.83 | +1.95% |
| August 2025 | 440.06 | +8.56 | +1.94% |
| October 2025 | 437.64 | +8.46 | +1.93% |
| December 2025 | 439.21 | +6.81 | +1.55% |
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
- Global Demand Recovery:
Rising prices suggest that market participants are increasingly securing positions. Seasonal factors, such as Easter preparations, play a significant role. - 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. - 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
- Short-Term Price Increases:
With rising global prices, EU prices are likely to follow. Market participants should closely monitor developments in the coming weeks. - Seasonal Demand:
The Easter season is expected to drive short-term demand, potentially pushing higher prices. - 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.
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