Brazil is the world’s largest sugarcane producer and sugar exporter, and supplies over half of the sugar traded globally. Expectations of the country reducing sugar production pushed global sugar prices higher.
What lies ahead?
A sustained increase in oil prices will likely further support the transition to Ethanol, leading to tighter supply and rising prices for sugar, which will benefit the sugar companies.Brent crude surged nearly 4% to $84.39 after closing at its highest level since January 2025 in the previous session. US West Texas Intermediate crude gained 3.5%, to $76.73, after settling at its strongest level since June.
Oil prices jumped as tanker traffic through the Strait of Hormuz came to a halt following repeated attacks on vessels in the area. More than 20% of the world’s oil supply passes through the Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
Barclays, the UK’s second-largest bank, on Saturday raised its forecast for Brent crude futures to $100 per barrel. “Oil markets might have to face their worst fears. As things stand right now, we think Brent could hit $100 per barrel as the market grapples with the threat of potential supply disruption amid a spiralling security situation in the Middle East,” the bank said in a report.
The Ugar Sugar Works shares rallied nearly 18.5%, while Rajshree Sugars & Chemicals and KM Sugar Mills shares gained around 13% each. Bajaj Hindusthan Sugar shares jumped nearly 12%, while Sakthi Sugars and Shree Renuka Sugars surged around 11% each. Balrampur Chini Mills shares jumped more than 9%.
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