Sugar Futures Rebound Further โ EU Factories Face Mounting Pressure Despite Global Lift
On 3 June 2025, ICE Sugar No.5 futures extended their recovery for a third consecutive session. The
August 2025 contract rose by 0.59% to USD 473.70/t (EUR 440.54/t). However,
spot prices in the EU edged lower by 1โ2 cents/kg, reflecting intense competitive and margin pressure on European sugar producers.
๐ ICE Sugar No.5 โ Closing Summary (03.06.2025)
(Exchange rate: 1 USD = 0.93 EUR)
๐ช๐บ EU Market Snapshot โ Spot Prices Erode Further
๐ FCA spot prices in the EU
fell slightly to
EUR 0.52โ0.55/kg, down 1โ2 cents from last week.๐ฆ Pressure is growing on EU producers as:
- Global supply remains ample
- Indian and Brazilian volumes flow aggressively into MENA and Asia
- EU processors struggle to maintain margins amid stagnant demand and discounting from Eastern Europe
๐ง Several traders describe the current situation as "
price fatigue"โthe market is oversupplied, buyers are inactive, and sellers are exposed.
๐๏ธ Retail Sugar Prices (1 kg, verified 03.06.2025)
๐ Price Comparison Table
๐ Global Context
๐พ Brazilian exports remain strong with high shipping volumes.๐ฎ๐ณ Indiaโs harvest outlook remains favourable โ few domestic constraints.๐ The EU now faces
a global market awash in supply while demand indicators remain neutral.
๐ฎ 3-Day Forecast (4โ6 June 2025)
๐
Outlook:Near-term gains are likely to fade unless new physical interest emerges.
๐งญ Conclusion & Strategy
๐ ICE Sugar continues to recover, but is fundamentally fragile๐ฆ EU spot shows no lift โ in fact, factories are
lowering prices to chase volumes๐ Margin stress is rising, especially in Western Europe
๐ Recommendations:
- ๐ Buyers: Take advantage of discounting โ FCA levels under EUR 0.54/kg are realistic
- ๐ฆ Sellers: Rethink pricing strategy โ Q3 contract pressure is growing
- ๐ Traders: Be cautious โ short covering may be nearing its limit without new catalysts
๐
Summary:Futures rise, but the real market remains under stress. The
EU sugar sector is feeling the squeeze, and June may bring further discounting.
