US Sugar Market Weakens as Prices Decline and Brazil Tariff Uncertainty Looms
the US sugar market experienced a slowdown during the week ending November 28, with prices for both beet and cane sugar easing. Several factors contributed to this softening, including favorable storage weather for beets, a larger harvest, and ongoing uncertainty surrounding potential tariff adjustments on Brazilian sugar imports.
Beet Sugar Market:
Spot and calendar 2026 prices for beet sugar remained steady to lower. The lower end of the price range for Midwest spot and 2025-26 beet sugar decreased by 1 cent per pound,while the high end held steady at 48 cents per pound. While current storage conditions in the Red River Valley and surrounding areas are ideal due to frigid temperatures, processors are mindful of potential risks. An early spring or prolonged warm spell could lead to premature thawing and deterioration of the beets, impacting sucrose content. The full extent of sugar content across the harvest won’t be known until more of the crop is processed.
Cane Sugar Market:
Cane sugar prices, for both spot and forward periods, declined for the first time in several months, influenced by recent drops in global raw sugar futures, though those futures partially recovered during the week.
Brazil Tariff Situation:
The evolving trade relationship between the US and Brazil is adding to market uncertainty.In July, a 40% ad valorem duty was imposed on Brazilian imports, including cane sugar, on top of an existing 10% reciprocal tariff. On November 20, President Trump announced a retroactive rollback of the ad valorem tax on certain agricultural goods starting November 13, exempting coffee, cocoa, and beef, but not sugar. Despite this exclusion, some trade sources believe the market is anticipating a potential future exemption for sugar imports.
Harvest & Corn Sweetener Impact:
Increased supply from both beet and cane harvests is also contributing to the downward pressure on prices. US cane sugar growers reported higher sugar content and a harvest unaffected by hurricanes this year. Simultaneously occurring, contracting for corn sweeteners for 2026 is progressing, though slowed by the Thanksgiving holiday. Ample corn supplies and questions regarding Mexican demand for high-fructose corn syrup are expected to benefit buyers, despite rising input and labor costs for refiners.
