Raw sugar futures recently dropped to their lowest in over a month, pressured by a stronger US dollar and surging production from top growers. Brazil is exporting more sugar than ever as a strong dollar boosts local profits, while India is forecasting an 18% jump in next season’s output and weighing larger exports to manage growing stockpiles. Over in Europe, ongoing trade talks between the EU and South America’s Mercosur bloc are drawing protests from c..
ountries like Poland and Hungary, worried bigger imports could squeeze their farmers. Coffee’s feeling the pinch too – arabica prices tumbled to their lowest since September, hit by both the removal of US tariffs on Brazilian beans and near-perfect growing weather in Brazil. Overall, abundant crops, currency shifts, and looser trade barriers are combining to keep sugar and coffee prices under pressure.
Traders are navigating a turbulent landscape as sugar and coffee prices retreat, driven mainly by record supply and shifting trade dynamics. The strong US dollar, bigger harvests, and policy changes like lower coffee tariffs are pushing prices down for now. Analysts at firms like StoneX suggest that only a pullback from sellers or renewed buying interest could stabilize prices in the near term. These trends are likely to reshape trading strategies and volatility in agricultural markets as the season unfolds.
The bigger picture: Harvest records and trade deals ripple worldwide.
Massive harvests in Brazil and India aren’t just shaking up local economies – they’re impacting global food chains, and new trade deals like a potential EU-Mercosur agreement could change agricultural markets for years ahead. Lower prices benefit consumers but leave many farmers and exporters facing slimmer margins and fresh political debates, especially across the EU. As global weather patterns and currencies keep shifting, food commodity markets are set for plenty of scrutiny and challenge well into next year.
