Sugar prices in New York retreat upon July 2025 contract deadline

Sugar prices in New York retreat upon July 2025 contract deadline

New York sugar futures on July 1, 2025 recorded declines in prices on the final delivery date of July’25 contracts from oversupply fears.

Sugar #11 or bulk raw cane sugar in New York lost by -2.09% daily, early on the July 1 deadline. 

The same fate overshadowed the much-traded sugar #5 or bulk raw white sugar in London, by -2.43% day-on-day.

By 3.48 a.m. Eastern Standard Time on the 1st, bulk sugar was fetching $0.16 a pound, a 4 1/4-month low. 

The rush by traders to meet deadlines stoked oversupply surmises amid ebbing demand for sugar, further pressuring U.S.’ sugar prices

Sugar # 16 and Oversupply

Oversupply concerns are mainly foreign-related and apply to the relatively expensive sugar #16.

No.16 refers to raw sugar for physical delivery to mainly New York from inside the United States or from duty-free foreign origins. 

By July 1, 2025, this type was selling lowly at $34.75 a pound, a -6.71% 52-week drop, per Barchart.

One major source of #16 is Mexico, which currently has an annual production boost of 7% for the 2025-26 season. 

The U.S. Department of Agriculture (USDA) cites that Mexico has a “suspension agreement” with the United States. The friendly protocol will therefore allow cross-border sugar exports into the U.S. to stay high at 572,489 tonnes in 2025-26. 

Uptick 2025-26 production in Mexico to 5.094 million tonnes might also counterbalance American production, which is down to 13.773 million short tons.

For now, trade outlook hinges upon a 2025-26 global surplus by 4.7% year-on-year, which is bearish on prices. To unravel pricing patterns, the statistics below use a specific review of sugar no.16, pertaining to NY.  

New York Sugar No.16 Prices Statistics 

Sugar #16 refers to American sugar for physical delivery or duty-free imports via mainly the New York port. It remains perhaps the most price-sensitive sugar contract type. This is because its physical delivery basis determines final consumer pricing of the sweetener. As of June 27, 2025, its price was at $0.3501 a pound while that of raw bulk sugar was around $0.16 a pound. 

How has sugar no.16 performed in NY and American markets in the recent past

According to the Federal Reserve Bank, St. Louis, #16 was cheapest between 1990 and 2025 in Q1 2000, at $0.1770 a pound. On the flip side, it reached its intermediate peak in the 1990-2025 period in Q3 2011, at $0.3893 a pound. Then it broke the bank at $0.4298 a pound in Q4 2023, before it slid to $0.3695 in Q1 2025. 

What was mid-2025 pricing of sugar #16

Since Q1 2025, no.16 has continually fallen, to settle at around $0.3475 per pound in early July 2025.  Part of the price pressure owes to projections of a 2025-26 global sugar surplus by 4.7% year-on-year, to 189.318 tonnes.