Global Sugar Prices Have Fallen Since February 2017

Global sugar prices have shown a downward trend since early 2017, coinciding with increased global production. Bloomberg data shows that the price of one-month sugar futures contracts closed at 12.01 US cents/lb on Tuesday (June 5th), a 1.1% increase from the previous day's close. However, compared to the end of last year's price of 15.04 US cents/lb, sugar prices have fallen by more than 20% year-to-date (YTD).

The increase in global sugar production, particularly from Thailand, a major global producer, has driven down global sugar prices since February 2017. High rainfall in several regions of Thailand boosted sugar production throughout the 2017-2018 period. This resulted in an estimated global surplus of 4.6 million tons.

At the National Strategic Food Price Information Center (PIHP), the price of premium sugar on Wednesday (June 6th) was Rp 15,550/kg, while local sugar was priced at Rp 12,500/kg.