Sugar prices in Europe soared to a high level in the past year due to the double impact of the summer drought, which hit sugar crops hard and the reduction in planting area in the early stages. According to data from Platts Energy, a subsidiary of S&P Global Energy, domestic sugar prices in northwest Europe hit 550 euros per ton on September 3, up nearly 40% from the beginning of the year. S&P Global Energy predicts that sugar production in the EU and the UK will drop 18.5% year-on-year to 14.3 million tons during the 2026/27 season, hitting a new low of more than ten years, and predicts that sugar prices in northwest Europe may rise further to around 600 euros per ton in the fourth quarter. At the global level, India's shift to imports due to tightening domestic supply, compounded by the El Niño phenomenon, raised concerns about production cuts in Asia. It is expected that the global sugar market will run out of supply during the 2026/27 season. George Weston, CEO of British United Foods, said that there will be a large gap in sugar production in Europe, and the outlook for sugar prices is optimistic. However, due to the fact that most sugar is sold through forward contracts and faces factors such as rising energy costs and falling production in Africa, the implementation of producers' profits may be lagging behind.

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