NASHVILLE, Tenn. (RFD-TV) — Global sugar markets are seeing a shake-up, and it is all tied to ethanol production. Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
“One of the big demand factors in Brazil is ethanol from sugar, and in the last few years, because the price of corn got so undervalued that it’s actually much, much cheaper to produce ethanol out of corn than it is out of sugar,” Hacket said. “And so, all of the corn that they possibly can utilize to make ethanol is being utilized, so demand for corn-based ethanol is going through the roof.”
The dip in corn prices, followed by a rise in demand, is putting sugar in a pinch.
“The sugar processors are now trying to make as much sugar as possible, and they’re reducing that demand for ethanol, and that is significantly changing the equation of how much importable supplies they have to the open market,” Hackett explained. “That’s been really hitting sugar prices pretty hard, and that’s a big structural change that, until corn prices go up, sugar prices could be in an oversupply.”
Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.
February 03, 2026 12:22 PM
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Economists are also closely watching how policy decisions in Washington could influence markets moving forward. Analysts say deferred futures for corn, soybeans, and wheat suggest markets are operating near break-even levels, not at prices that would encourage expanded production.
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Winter Weather And Markets Reshape Agriculture Nationwide This Week
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Shrinking sheep numbers contrast with gradual goat expansion, signaling tighter lamb supplies but steadier growth potential for meat goats.
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Traders say that shift could eventually prompt the USDA to scale back soybean export projections, noting the outlook differs greatly for other grain commodities.
January 30, 2026 01:13 PM
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The federal government’s status is far from the only factor moving the markets on Friday. Two critical reports released today on producer inflation and the status of the U.S. cattle herd are also top of mind.
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