Molasses Price Trend and Forecast 2026-2027

Market Overview

The United States remained the priciest Molasses market tracked, rising just above 3.2% in Q2 2026 to near USD 320.00/MT from about USD 310.00/MT in Q1, and it was steady biofuel blending demand together with weather-related harvest constraints that kept the market elevated. The global average climbed from close to USD 245.00/MT to near USD 254.00/MT, a gain of roughly 3.7%. As the data shows, government policies diverting molasses toward biofuel and distillery production, rather than typical supply and demand shifts, have become an increasingly important driver across several markets tracked here, and the global average is likely to run in the USD 245 to 275/MT range through the second half of the year.

Molasses is a viscous, dark syrup byproduct of the sugar refining process, produced when sugar is extracted from sugarcane or sugar beets. It serves across animal feed, food and beverage sweetening, fermentation substrate applications, and biofuel and ethanol blending, with blackstrap molasses, the most concentrated grade, particularly valued for its nutritive value in feed formulations. Because molasses supply is fundamentally tied to sugar production, unpredictable weather patterns affecting sugarcane and sugar beet yields, government policy decisions diverting supply toward biofuel or distillery use, and demand competition between feed, food, fermentation, and energy sector buyers are what really move the price from quarter to quarter.

Molasses Price Forecast for 2026

Government policies diverting molasses toward biofuel blending and distillery production show no clear sign of reversing, which points toward continued firmness through H2 2026 across every market tracked. Weather variability affecting sugarcane and sugar beet yields in key producing regions should remain a key source of quarter-to-quarter volatility.

A further weather disruption to sugarcane or sugar beet harvests, or additional policy-driven diversion toward biofuel or distillery use, could be what pushes prices above this forecast. A particularly strong harvest, or a moderation in biofuel blending mandates, could be what eases the market back toward the lower end instead.

For the Quarter Ending June 2026

Molasses Prices Q2 2026:

• United States: USD 320.00/MT
• Japan: USD 248.00/MT
• India: USD 235.00/MT
• Brazil: USD 212.00/MT

Molasses Prices in United States

The United States stayed the priciest market by a wide margin, with the price moving from about USD 310.00/MT to near USD 320.00/MT, a gain of just above 3.2%. It was steady biofuel blending demand, together with weather-related constraints on sugarcane and sugar beet harvests, that carried the increase.

Why did the price of Molasses change in Q2 2026 in United States?

The energy sector's consistent uptake of molasses for biofuel blending has added a persistent layer of price support, and it is this demand, competing directly with feed manufacturers and food processors for the same supply, that has kept United States pricing on a steady upward path even as domestic sugarcane processing has generally improved.

Molasses Prices in Japan

The Japanese price moved from about USD 240.00/MT to near USD 248.00/MT, a gain of just above 3.3%. It was firm demand from fermentation and food processing industries, together with occasional disruptions from regional exporters, that carried the increase.

Why did the price of Molasses change in Q2 2026 in Japan?

Demand from fermentation and food processing applications has stayed firm throughout the year, creating a steady pull on available supply, and it is this consistent demand, combined with periodic disruptions affecting regional export flows, that has kept Japanese pricing on its gradual upward path.

Molasses Prices in India

The Indian price moved from about USD 225.00/MT to near USD 235.00/MT, a gain of just above 4.4%. It was continued tight availability, tied to policy changes diverting more molasses toward distillery production, that carried the increase.

Why did the price of Molasses change in Q2 2026 in India?

A revised state-level molasses policy increased the quarterly allocation reserved for country liquor distilleries, requiring mills to release a larger share of their reserved supply each quarter, and it is this policy-driven diversion, tightening the pool available for other users, that has kept Indian pricing on a steady upward path.

Molasses Prices in Brazil

The Brazilian price moved from about USD 205.00/MT to near USD 212.00/MT, a gain of just above 3.4%. It was steady demand from ethanol and feed manufacturers, together with typical seasonal supply conditions, that carried the increase.

Why did the price of Molasses change in Q2 2026 in Brazil?

Brazil's sugarcane processing sector serves both the ethanol and feed manufacturing industries simultaneously, and it is this dual demand pull, combined with typical seasonal supply patterns, that has kept Brazilian pricing on a gradual upward path, remaining the most affordable of the four markets tracked.

For the Quarter Ending March 2026

Molasses Prices Q1 2026:

• United States: USD 310.00/MT
• Japan: USD 240.00/MT
• India: USD 225.00/MT
• Brazil: USD 205.00/MT

Molasses Prices in United States

The price reached close to USD 310.00/MT in Q1 2026, a rise of just above 3.3% from Q4 2025. It was continued weather variability affecting sugarcane and sugar beet yields, together with firm biofuel demand, that pushed the market higher.

Why did the price of Molasses change in Q1 2026 in United States?

Weather variability in key producing belts continued affecting sugarcane and sugar beet yields entering the year, and it was this supply uncertainty, meeting steady demand from feed manufacturers and the energy sector's biofuel blending requirements, that drove the United States increase.

Molasses Prices in Japan

The price reached close to USD 240.00/MT in Q1 2026, a rise of just above 3.4% from Q4 2025. It was steady fermentation-sector demand, together with regional supply conditions, that pushed the market higher.

Why did the price of Molasses change in Q1 2026 in Japan?

Fermentation and food processing demand held its usual steady pace entering the year, and it was this consistent pull, meeting generally adequate but not abundant regional supply, that drove the modest Japanese increase.

Molasses Prices in India

The price reached close to USD 225.00/MT in Q1 2026, a rise of just above 7.1% from Q4 2025. It was policy changes increasing the distillery allocation share, together with continued biofuel-sector competition for supply, that pushed the market higher.

Why did the price of Molasses change in Q1 2026 in India?

A revised molasses policy raised the quarterly allocation for sugar mills reserved for distillery use, and it was this policy shift, tightening the supply available for feed, food, and export buyers, that drove the sharp Indian increase.

Molasses Prices in Brazil

The price reached close to USD 205.00/MT in Q1 2026, a rise of just above 5.1% from Q4 2025. It was steady demand from ethanol and feed applications, together with typical seasonal supply conditions, that pushed the market higher.

Why did the price of Molasses change in Q1 2026 in Brazil?

Demand from ethanol production and feed manufacturing held its usual steady pace entering the year, and it was this demand, meeting typical seasonal supply patterns, that drove the Brazilian increase.

Quarterly Molasses Price Trends

This market climbed steadily across every quarter tracked here. Close to USD 216.00/MT in Q1 2025 rose to about USD 224.00/MT, near USD 231.00/MT, and close to USD 234.00/MT by Q4, before continuing to about USD 245.00/MT in Q1 2026 and near USD 254.00/MT in Q2. That is a rise of roughly 17.6% across the window, tracking weather-driven supply constraints and biofuel-sector demand closely.

What was Molasses Price in 2025?

It was unpredictable weather affecting sugarcane and sugar beet yields, meeting steady demand from feed manufacturers and growing biofuel-sector uptake, that drove the consistent 2025 climb. The global average opened near USD 216.00/MT in Q1 and climbed to close to USD 234.00/MT by Q4, a rise of just above 8.3% for the year, with every quarter posting a gain.

Molasses Prices in United States in 2025

The United States price climbed from about USD 275.00/MT in Q1 2025 to near USD 300.00/MT by Q4, a rise of just above 9.1% for the year, the highest absolute cost among the four markets tracked throughout. It was weather-related constraints on sugarcane and sugar beet harvests, meeting steady demand from feed manufacturers and growing biofuel-sector uptake, that drove the sustained climb through 2025.

Molasses Prices in Japan in 2025

The Japanese price climbed from about USD 215.00/MT in Q1 2025 to near USD 232.00/MT by Q4, a rise of just above 7.9% for the year. It was firm demand from fermentation and food processing industries, meeting occasional disruptions from regional exporters, that drove the steady climb through 2025.

Molasses Prices in India in 2025

The Indian price climbed from about USD 195.00/MT in Q1 2025 to near USD 210.00/MT by Q4, a rise of just above 7.7% for the year. It was steady demand from distilleries and feed manufacturers, meeting supply conditions shaped by state-level allocation policy, that drove the gradual climb through 2025, ahead of the sharper policy-driven tightening that followed into 2026.

Molasses Prices in Brazil in 2025

The Brazilian price climbed from about USD 180.00/MT in Q1 2025 to near USD 195.00/MT by Q4, a rise of just above 8.3% for the year, the smallest absolute cost among the four markets tracked throughout. It was steady demand from ethanol production and feed manufacturing that drove the gradual climb through 2025.

How We Can Help

Expert Market Research: Your Source for Real-Time Molasses Price Intelligence

The Molasses market depends on both sugar production economics and an increasingly important layer of government policy, so Expert Market Research tracks weather conditions in key sugarcane and sugar beet growing regions closely alongside biofuel blending mandates and distillery allocation policies across the four markets covered here. This is combined with trade flow data to build the forecasts. Should the Molasses pricing data or procurement strategy support be needed, the team is ready to help.