Quarterly Market Outlook - February 2026

HEADLINES

World Sugar Market

Second revision of the 2025/26 moves global balance to a surplus of 1.218 mln tonnes

Latest 2024/25 update shifts global deficit to 3.464 mln tonnes from 2.916 mln tonnes

Global consumption forecast to rise 0.31% to 180.069 mln tonnes in 2025/26

Trade surplus of 1.102 mln tonnes in 2025/26 is in line with production / consumption balance

Stock-to-use ratio at 51.81% in 2025/26 while the alternative ISO ending-stock calculation points to a 15-year low

Market Price Update

Average monthly ISA prices in February (up to the 20th) below USD14 cents/lb and 5-year low

The ISO price view is neutral over the next three months with the modest surplus that is projected. However, tight stocks and lower than expected production for India and Thailand, together with uncertainty around CS Brazil sugar allocation, could change the outlook

Brent crude averaged USD64.59/barrel in January, up 4.6% from December's post-2021 low, as geopolitical supply risks intensified

Corn prices post first monthly decline since August 2025 on raised global production forecasts and record output in China and the US

Coffee prices retreated to a five-month low in January

Cocoa plunged to a two-year low amid consecutive supply surplus forecasts

US Dollar weakened further, with its 10% depreciation in 2025 marking the worst annual performance against major trading partners in over five decades

Most major sugar markets experienced price decreases between Nov–Jan despite the ISA Daily Price rising modestly

Mexican estándar sugar prices surged 15%

World Fuel Ethanol Market

World ethanol production estimated at 122.9 bln litres in 2025, from 119.2 bln litres in 2024; forecast to rise further to 127.7 bln litres in 2026

Global consumption estimated at 122.7 bln litres in 2025, from 117.8 bln litres in 2024; projected to reach 125.3 bln litres in 2026

US production reached record 62.5 bln litres in 2025; exports at an all-time high of 8.3 bln litres

Brazil fuel ethanol production at 33.2 bln litres in 2025; forecast to rise to 36.3 bln litres in 2026

India's production reaches a record 10.4 bln litres in 2025; projected to reach 12 bln litres in 2026

EU reversed its outright 2035 ban on internal combustion engine vehicles

Co Product Markets

Global exportable supplies of molasses expected to increase in 2026

Bigger crops in key exporters, and two major policy decisions, put downward pressure on cane molasses prices

Beet molasses will be tighter in 2025/26 given the lower crop in Europe

Molasses exports from nine key origins down 2% in 2025

Australia, Indonesia, and Thailand are largest Asian/Pacific region exporters in 2025

US imports less in 2025, but extra-EU imports recover 

Aggregate imports by five key Asian destinations down 20% in 2025

Brazil: bagasse-based electricity sales totalled 20,409 GWh in 2025, down 3.8% on previous year

India: Bagasse power output in 2025/26 (October–September) at highest level since 2022/23

Global bioplastics production capacity projected to double between 2025 and 2030

EU Bioeconomy Strategy introduces bio-based content targets for bio-based polymers

Alternative Sweeteners

Forecast further contraction in US offtake and expected export losses to Mexico weigh on 2026 US     HFCS outlook

US net corn sweetener costs rise in 2025

Annual US HFCS price negotiations saw price roll-over for 2026

Modest recovery in EU isoglucose production forecast in 2025/26

Biotechnology boosting production of Monkfruit sweetener

New biosynthetic method in development to produce rare sugar Tagatose

Sugar reduction technology advancing

WTO Update

Challenges remain to concrete and meaningful MC14 outcomes for agriculture

RTAs and Sugar Provisions

US Supreme Court declared many of President Trump’s reciprocal tariffs illegal

Court’s decision throws global trading system into renewed uncertainty

President Trump imposes new global 15% tariff

USTR says Supreme Court decision does not impact tariffs earlier agreed under trade agreements

US trade deals so far in 2026 include Argentina, Bangladesh, El Salvador, Guatemala, India, Indonesia and Taiwan

One-year extension of the African Growth and Opportunity Act (AGOA)

China implements zero-tariff treatment for imports from 53 African countries

India and New Zealand conclude FTA talks

India and Oman FTA signed

India and EU FTA signed, creating world’s largest free trade zone

EU-MERCOSUR FTA officially signed

China implements zero-tariff treatment for imports from 53 African countries

Contents:

Executive Brief 									

World Sugar Market								
        World Balance									
	Production								
	Consumption									
	Trade											
        Exporters									
        Importers									
	Fundamental Outlook								
	Brief(25)06 – Trade Balance for Raw and White Sugar				
				
Market Price Update								
	Futures, spreads and arbitrage							
	Freight										
	Commodities and Currencies							
	Domestic Prices									

World Fuel Ethanol Market							
	Overview									
	Price Dynamics									
	Carbon Markets									
        Production									
	Consumption									
	
Co Product Markets								
	Molasses									
	Bagasse Cogeneration								
	Bioplastics & Biochemicals							

Alternative Sweeteners								
	HFCS / Isoglucose								
	Intensive Sweeteners																

WTO Update									

Regional Trade Agreements and Sugar Provisions			

World Sugar Balance Estimates						
																	

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