Sugar prices fell to 1.5-week lows on Tuesday, with May New York world sugar #11 (SBK26) closing down 0.19% and May London ICE white sugar #5 (SWK26) down 0.84%. This decline is largely attributed to increased sugar production in Brazil, where cumulative output for the 2025-26 season has risen by 0.7% year-over-year to 40.25 million metric tons (MMT). The Brazilian real’s strength, reaching a two-week high against the dollar, further dampens export sales from the region.
The market is grappling with a projected global sugar surplus, with estimates suggesting surpluses of 3.4 MMT for the 2026/27 crop year and 2.9 MMT for 2025/26. Increased production forecasts from Brazil, India, and Thailand are contributing to these expectations, as India also prepares for higher sugar exports following government approvals for additional shipments.
Market participants should monitor the evolving dynamics of sugar production and export policies, as these factors will significantly influence pricing trends and investment strategies in the sugar sector.
Source: nasdaq.com