Morning Call Jun 01st, 2026

NY raw sugar market ended last week on a recovery note, with July 2026 advancing 13 points to US$ 14.06 c/lb, although still posting a weekly loss of 64 points.
 

Sugar market remains under pressure from comfortable global Trade Flow and rising production across key origins, in addition to the robust crop in CS Brazil and the approval of Brazil’s gasoline subsidy.
 

Sugar market recovered on Friday in a technical correction move and amid concerns over India’s monsoon outlook, following a downward revision to rainfall forecasts and increased risks associated with El Niño.
 

CFTC: funds and small specs increased their net short position in the NY raw sugar market from 91,770 lots on May 19th to 111,538 lots on May 26th.
 

India: the Meteorological Department (IMD) lowered its 2026 monsoon rainfall forecast, projecting precipitation at 90% of the long-term historical average, the lowest level in 11 years.
 

India: according to the IMD, the revision reflects the development of El Niño, which is expected to reach moderate to strong intensity in 2H 2026.
 

India: the government approved a 2.8% adjustment to the minimum cane price for the 26/27 crop, raising it to a record INR 3,650/mt for the seventh consecutive year.
 

India: the remuneration mechanism remains linked to industrial yield, adjusting the amount paid to suppliers according to the quality of the delivered cane.
 

Brazil: ethanol market for producers declined again, reflecting spot sales by mills seeking cash availability at month-end, despite still-limited liquidity.
 

Brazil: last Friday, in São Paulo, hydrous ethanol for producers was traded at R$ 2.1930/liter, down 2.4% WoW, while anhydrous ethanol was traded at R$ 2.5777/liter, down 0.4% WoW, both ex-mill and net of taxes.
 

Brazil: in Paulínia (SP), the CIF hydrous ethanol price ended the week at R$ 2.3510/liter, net of taxes, a slight decline of 0.3% over the period, according to the DATAGRO Price Reporting Agency (PRA).
 

Brazil: PLP 114/2026 was amended to include support measures for the sector, providing for tax benefits of up to R$ 600 million for ethanol producers and maintaining the tax differential relative to fossil fuels.