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Insight Focus
Cash sugar trading was slow with prices unchanged. The sugar beet harvest wrapped up in Michigan, and the sugar cane harvest continued in Florida and Louisiana. Sales of refined sugar for 2024-25 were slow, and concerns over potential US tariffs on imports from Canada and Mexico persist.
Tariff Concerns Amid Sweetener Negotiations
The potential Trump administration tariffs of 25% on imports from Canada and Mexico has raised concerns in the sweetener industries. While all was conjecture at this point, most thought the impact on sugar would be minimal.
While Mexico is a key supplier of sugar to the US, trade is governed by the suspension agreements that override the US-Mexico-Canada trade agreement.
Others noted that US needs could be met using high-tier sugar imports, which was the case last year. Still, uncertainty persisted, especially the potential for retaliatory tariffs on Mexico’s imports of US corn sweeteners.
Negotiations and contracting of corn sweeteners for 2025 were ongoing. Indications were that most contracted prices were flat to slightly lower from 2024.
Sugar Market Activity Slows
Cash sugar trading was slow during the week ending November 29, with the Thanksgiving break adding to the quiet. Cash prices were unchanged. The sugar beet harvest was wrapped up, while the sugar cane harvest continued.
The sugar beet harvest in Michigan, where several weather-related delays were incurred throughout the fall, was wrapped up just before Thanksgiving. Post-harvest weather appeared favourable in most regions where beets are piled outdoors as low temperatures have plunged to near zero in some areas.
The sugar cane harvest continued in Florida and Louisiana, with the latter’s USDA state office reporting the harvest 64% complete as of November 24, about a week ahead of average.
New sales of refined sugar for 2024-25 continued at a slow pace. One processor was out of the market because of lower-than-expected sugar beet production.
Beet processors had a high percentage of their 2024-25 sugar production sold, but several have more sugar to sell than expected because of large beet crops.
Prices Remain Unchanged
Users were slow to buy more sugar than they may need amid uncertainty about demand for their own products. Prices for 2024-25 were left unchanged. The market for some beet sugar sellers had become less defined as sugar was sold across the quoted range, with sales dipping below the range in a few cases.
Refined cane sugar prices were steady, maintaining a wider-than-normal premium to beet sugar prices. It was thought that as long as raw sugar futures continued to trade in current price ranges, there was limited incentive to drop refined cane sugar prices, which helped underpin beet sugar values.
Inquiries for 2025-26 continued. Some sources noted sharply lower bids for beet sugar. But sellers were reluctant to drop offers this far out from the start of the new season. One seller said he offered beet sugar at steady prices with 2025.
So far, little if any 2025-26 business has been done. The market is expected to remain quiet through the end of the year.
Sugar deliveries for the current year were mostly steady. Retail deliveries appeared strong. But deliveries of bulk sugar ranged from “as expected” to slightly below expectations.
