Summary of Sugar Market Trends
On July 11, 2025, sugar futures on the ICE exchange experienced a notable increase of nearly 2%, indicating a potential reversal of a prolonged downtrend. This rally is attributed to a structurally weak U.S. dollar, which has not dampened market sentiment despite a slight strengthening of the currency on the same day.
Market Analysis
In June, China reported its highest sugar imports since 2018, further supporting the bullish sentiment in the sugar market. The price of sugar has rebounded from a significant low of $15, which was the lowest point since 2021. Analysts suggest that if the current short-term trend continues, sugar prices may test the $17.3 region, where the 50-day Exponential Moving Average (EMA) is situated.
Historical data indicates a similar price reaction during the first two weeks of May, suggesting that the market may be poised for further gains if the upward momentum is maintained.
Conclusion
The sugar market is currently showing signs of recovery, driven by external factors such as currency fluctuations and increased demand from major importers like China. Traders and investors should monitor these developments closely as they could signal a shift in market dynamics.