Meanwhile, mills in Brazil’s Center-South are boosting production. Below-average rains are expected for the country’s cane areas this month, favoring the harvest, Hedgepoint Global Markets analyst Livea Coda said in a Thursday report. The expectation of good Brazilian supplies in the short term is helping to keep a key spread between October and March futures lower.

“Markets do not seem so tight during this third quarter, but they are expected to become tighter from the fourth quarter onwards,” she said.

Eoin Treacy's view

Rising energy prices create demand for sugar as Brazil will turn towards more ethanol production. That’s just one example of how the uptrend in oil prices will have a knock-on inflationary impact on the wider global economy.

Sugar broke out to new recovery highs this week to make near 12-year highs. A clear downward dynamic will be required to check momentum beyond a pause.
The Invesco DB Agriculture ETF continues to hold a succession of higher reaction lows. As a futures fund, where contango eats into returns, it needs strong trends to drive an advance.
Mosaic is putting in a higher reaction low.

Corteva is firming from the lower side of its range and the 1000-day MA.

CF Industries continues to recover and is now firming from the region of the 200-day MA.