Sugar Rallies as Brazil Rain Threatens Supply (12 October 2026)

Sugar futures rallied sharply on Monday, with both markets settling near their session highs. New York March 2027 raw sugar gained 0.60 cent, or 2.96%, to 20.85 cents/lb after trading between 20.00 and 20.89. London December 2026 white sugar rose $18.20, or 3.35%, to $560.70/t, within a $534.30–562.00 range.

Both contracts traded below Friday’s lows and above Friday’s highs, then settled above the previous session’s entire range. Raws finished just 0.04 cent below Monday’s high and whites $1.30 below theirs. The stronger finish restores upward momentum after Friday’s tentative recovery, although March raws remain below last Wednesday’s 21.24-cent peak.

Nearby spreads strengthened alongside outright prices. The raw March–May premium widened by 0.07 cent to 0.85 cent/lb. In whites, December’s discount to March narrowed by $5.30 to $7.20/t, reversing Friday’s deterioration. The matched March white-over-raw futures premium was little changed at $108.24/t, compared with $108.56 on Friday. December whites therefore outperformed without a corresponding increase in the matched March differential.

Turnover increased in both markets, particularly whites. The latest confirmed open-interest figures relate to Friday and show little net change in outstanding exposure. Monday’s open interest is not yet available, so the rally cannot reliably be assigned to new long positions or short covering from these data alone.