London white sugar futures rose for a third consecutive week, trimming a Friday
dip and finishing the week more than 2% higher after earlier hitting the
strongest level since April 2025. The move has widened the refined-vs-raw sugar
premium, a key indicator of refining profitability; a spread above $100/t is
typically a strong incentive to process. Refined supplies are expected to
tighten in the 2026-27 season beginning in October as smaller crops in Europe
and India curb exports, and Czarnikow warns the global deficit could widen
further in 2027-28 if cane and beet area falls. Open interest climbed with
prices, suggesting fresh buying rather than only short-covering, according to
Paris broker Deepcore. Offsetting factors: Brazilian raw sugar supply remains
ample and weak import demand keeps near-term availability comfortable, while the
current white sugar premium to ethanol could encourage mills to produce more
sugar.
