Gold And Silver Rocked In 2025, But This Commodity Didn't Have A Good Time

• Raw sugar prices are on track for their steepest annual drop in eight years.
• India’s sugar production jumped 23.4% to 11.83 million tonnes in the first three months of the 2025-26 season, according to Cooperative body data.
• White sugar futures for March deliveries in London have fallen around 16% in 2025.

Unlike gold, silver, and copper, not all commodities managed to record significant gains this year.

Raw sugar prices are on track for their steepest annual drop in eight years, pressured by rising global supplies and subdued demand. Although there was a brief rally this week, the overall trend remains downward.

March NY world sugar #11 (SBH26) rose 2% to $0.1513 per pound on Wednesday, but remains down over 20% for the year. The contract is on pace for a seventh monthly decline in 2025 and is headed for its steepest annual fall since 2017.

White sugar futures for March deliveries in London have also struggled, falling around 16% in 2025. It is currently trading 2% higher at $426 per ton.

What Has Caused The Decline?

The biggest drag on prices has been surging output from key exporters. Brazil, the world’s top sugar producer, continues to post strong production, while production in India rebounded sharply after weather-related setbacks in recent years. This has lifted global supplies well above demand, leaving sugar prices under sustained pressure.

India’s outlook has been particularly bearish for prices. The country is allowing sugar exports again to reduce domestic oversupply, and industry groups have raised production forecasts for the 2025/26 season. India’s sugar production jumped 23.4% to 11.83 million tonnes in the first three months of the 2025-26 season, the National Federation of Cooperative Sugar Factories (NFCSF) reported on Wednesday.

Brazil’s outlook also remains high, even though some forecasters expect output to ease slightly in later seasons. Gross annual production is expected to increase by 3% in the 2025-2026 season, according to reports.

Government agencies and industry data continue to point to near-record production levels. Last month, the International Sugar Organization forecast a global sugar surplus of 1.63 million tons for 2025/26, following a 2.916 million-ton deficit in 2024/25.

Retail Reaction On Stocktwits

Retail sentiment for Teucrium Sugar Fund (CANE) on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier. It was up 1.2%.

On a year-to-date basis, CANE declined more than 15%

Read also: Silver Slipped 5% Today But Is Poised For Biggest Annual Gain in 46 Years

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