On 8th Nov’2025, we had published a trade recommendation on long sugar when prevailing price was $14.10/lb for a target of $18/lb with a stop loss at $11.85/lb. Since then, Sugar prices have moved up to current levels of $16.6. We believe that the medium-term trend for sugar prices is north only as severe weather-driven crop damage in Europe, India, and Thailand, combined with Brazil prioritizing profitable ethanol production over sugar might only support sugar prices. In July itself Brazil stipulated increasing amount of ethanol that can be added to gasoline that led to increased demand from fermenters. We continue to recommend holding on to our long sugar view with a profit target of $18/lb and a trailing stop now at $15.85/lb.
