European sugar prices continue to face downward pressure, with beet belt prices now trading below the import parity threshold of €586 per tonne. At the same time, early indications point to potential acreage reductions in key deficit regions for the 2026 season.
Current pricing landscape
As of 15 October 2025, European sugar prices have experienced a sharp correction. The West-EU Vesper Price Index stands at €545 per tonne DAP, while the South-EU VPI is at €575 per tonne DAP and the East-EU VPI at €520 per tonne DAP. Country-specific benchmarks show Germany at €557 per tonne DAP, the Netherlands at €550 per tonne DAP, Poland at €530 per tonne DAP, and Spain at €595 per tonne DAP.
Prices in Germany, the Netherlands, Poland and Spain remain trading below the import parity of €586 per tonne, which reinforces the pricing floor. Analysts see limited further downside and recommend securing volumes at current levels.
Favorable harvest conditions
The 2025 harvest is progressing well across Western Europe, supported by near-ideal growing conditions throughout the season. Dutch sugar content is averaging 17.2°, while Northern Germany’s crop quality is reported as very good.
2026 acreage outlook
Early indications point to a 3% reduction in plantings for 2026, concentrated in marginal Eastern EU and Scandinavian areas. However, competing crops offer limited appeal, with wheat futures trading below production costs and oilseed markets facing headwinds from US-China trade disruptions, potentially limiting grower willingness to switch away from beet.
The expected acreage reductions in Eastern EU and Scandinavia, which are already deficit regions, create potential supply gaps that could be filled by increased flows from core beet belt producers or rising import volumes into these markets.
Trade developments
The EU-Mercosur FTA adds only 10,000 tonnes of sugar imports, representing a minimal impact. However, the fast-tracked India FTA poses greater uncertainty for market stability.
Market outlook
The market outlook remains neutral to slightly bearish near-term as prices continue declining, though downside appears limited with values now at import parity levels while current crop conditions remain favorable.
The longer-term sentiment turns slightly bullish as 2026 uncertainties build with indicated acreage reductions in deficit regions combined with weather volatility risks that may tighten supply, despite competing crops remaining unattractive which could limit the extent of area losses.
This newsarticle is part of a comprehensive sugar market analysis. For the full market analysis visit: https://app.vespertool.com/market-analysis/2360
