EU sugar production plummets as drought and El Niño intensify, sending white sugar futures surging against the trend
智通财经2026/09/07 13:01Show original
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⑴ On Monday, white sugar futures rose slightly by about 0.8% to $527 per ton, after closing down about 0.7% on Friday, as the market continued to digest signals of shrinking supply from the European Union. ⑵ Germany's refined sugar production for the 2026/27 season is expected to decline by about 23% compared to the previous season, to around 3.39 million tons, mainly due to a significant reduction in beet planting area and severe drought and heatwave conditions during the summer. ⑶ The El Niño weather pattern continues to pose a significant threat to output in major sugar-producing countries such as India and Thailand. The World Meteorological Organization has stated that El Niño will intensify further by 2027 and may become the strongest on record, increasing extreme weather risks next year. ⑷ Pakistan has announced a tender to sell approximately 108,000 tons of white refined sugar for export. Raw sugar futures were basically flat last Friday at around 18 cents per pound, after hitting a 16-month high the previous week. ⑸ As for other agricultural products, Robusta coffee fell about 0.8% to $3,403 per ton after hitting a two-and-a-half-month low. Uganda's July coffee exports fell by about 15% year-on-year, but Brazil's upcoming 2026/27 season crop is expected to be abundant and August exports surged about 45% year-on-year, continuing to put pressure on coffee prices. ⑹ London cocoa fell about 1% to £4,471 per ton, still well below the one-year high of around £4,988 reached last Tuesday. Concerns about excessive rainfall brought by El Niño to West Africa's cocoa-producing regions have eased and market sentiment has somewhat recovered.
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