The most-active New York contract rose as much as 1.7% on Monday to above 15 cents a pound, extending gains for a second straight session.
Investors cut short positions on expectations that mills in top supplier Brazil will direct more cane toward ethanol rather than sugar production.
The Middle East war is seen supporting biofuel demand, though falling ethanol prices in Brazil may curb mills' incentive to shift even more cane into fuel.
With Brazilian mills favoring ethanol, will high oil prices permanently shrink the world's sugar supply?
The airline industry is turning to sugarcane for fuel. Will this new demand permanently disrupt the global sugar market?