Sugar Supply LevelingOff Post-COVID

COVID-19 led to increased industrial demand for sugar, but supply levels have now returned to normal, and demand has softened. Sugar demand for 2025 is expected to be the same as 2024 the global market price is stable at around 19 cents per pound, keeping the US sugar price at about 38 cents a pound. Dr Robert Johansen, Director of Economics and Policy Analysis at the American sugar Alliance, has more on sugar economics for 2025.

“We're expecting to see generally a small either a small surplus or a small deficit in terms of the world balance sheet. That means the prices, barring any unforeseen, you know, supply shock due to weather, we're not expected to see real big changes in the world market going forward. And that means that the US price will probably be pretty stable too, at that 38 cent to 40 cent range for raw sugar>

Dr Johansen says a stable market and good crop typically lead to increased revenues moving forward,

when it comes to refined sugar, of course, and beet sugar falls into that category. It's pretty well linked to that raw sugar price, so a little bit higher than that. When we look at wholesale price for sugar that's being sold around the country, we don't expect to see too many changes. And that's sort of hovering in the 45 to 55 cent range, depending on where it's being delivered to (and) and how far contracted in advance it is.”