Morning Call May 27th, 2026

NY raw sugar market traded lower this Tuesday, with July 2026 dropping 16 points to US$ 14.54 c/lb. A comfortable global Trade Flow, Brazil’s gasoline subsidy, and easing tensions in the Middle East reinforced the bearish trend.
 

Brazilian government introduced a temporary gasoline subsidy of R$ 0.44/liter, effective for two months, creating room for a potential price adjustment at Petrobras refineries.
 

Brazil: according to DATAGRO estimates, current gasoline prices at Petrobras refineries are 43.5% below import parity; a full pass-through of the subsidy could reduce this gap to 33.8%.
 

Brazil: sugar exports totaled 1.559 mmt through the third week of May, with the daily average running 2.3% below the level observed in the same period of 2025.
 

Mexico: sugar exports totaled 122 k mt in April (+82.4% YoY), lifting cumulative 25/26 crop exports to 615 k mt (+16.8% YoY).
 

European Union: sugar beet planting for the 26/27 crop year is virtually complete, with crop emergence advancing across most areas under generally favorable weather conditions.
 

European Union: localized concerns remain over moisture deficits in parts of Central and Eastern Europe, as well as potential impacts from the late-April cold wave on early crop development.
 

European Union: the European Commission projects average beet yields at 77.4 mt/ha for the 26/27 crop, down 5.1% from the exceptional 25/26 performance, but still 1.6% above the five-year average.
 

European Union: yields in France are projected to decline 7.7% to 83.1 mt/ha, while Germany is expected to post a 6.1% drop to 78.0 mt/ha.
 

European Union: with an estimated 8% reduction in planted area, DATAGRO projects EU sugar production at 14.40 mmt in the 26/27 crop, down from 16.60 mmt in 25/26.