
Sugar Prices Outpace Stocks as El Niño and Brazil's Ethanol Pivot Tighten Global Supply
Raw sugar prices surged 21.5% in August 2026, outperforming the S&P 500 year-to-date. The rally is driven by a severe supply deficit caused by a European heat wave, a strengthening El Niño threatening crops in Asia, and Brazil diverting sugarcane to ethanol due to high oil prices. India's decision to import 1 million metric tons of sugar further tightens global availability, while analysts warn that weather risks leave little margin for error in the remaining harvest.













