The average FAO sugar price index in August was 11.9 per cent higher than in July. This is the highest level since June 2025. The rise in prices is mainly due to growing concerns about a possible reduction in global sugar supply during the 2026–2027 season.
Persistent hot and dry weather, combined with a reduction in planted area compared with the previous season, has led to a downward revision of the sugar beet harvest forecast for the European Union.
In addition, weather conditions associated with El Niño continued to have a negative impact on the potential harvest of sugarcane in key producing countries in Asia. The rise in sugar prices on international exchanges was fuelled by India’s decision to lift import duties on raw sugar.
Reports of a decline in production in key sugarcane-growing regions in south-central Brazil also played a part in the worsening outlook for sugar supply on the world market.
In August, the FAO Cereal Price Index rose by 2.2 per cent compared with July, whilst vegetable oils rose by 0.6 per cent, meat by 1.0 per cent and dairy products by 2.3 per cent.
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