Sugar prices took a hit on Thursday, with May NY world sugar #11 (SBK26) closing down 1.90% and May London ICE white sugar #5 (SWK26) down 1.45%. The decline follows a significant increase in sugar production in India, which reported a 9% year-over-year rise to 27.12 million metric tons for the 2025-26 season. Additionally, Brazil’s sugar output is also on the rise, further pressuring prices amid a global surplus forecast.
The bearish sentiment in the sugar market is compounded by supply disruptions from the closure of the Strait of Hormuz, which has impacted around 6% of global sugar trade. Analysts predict a global sugar surplus for the upcoming crop years, driven by increased production in key countries like India and Brazil. This oversupply is likely to keep prices under pressure, especially as India’s government has approved additional sugar exports.
Market professionals should monitor these developments closely, as the combination of rising production and potential export increases from India could lead to sustained downward pressure on sugar prices in the near term.
Source: nasdaq.com