May NY world sugar prices dipped to a two-week low today, down 0.13% amid bearish news from India, where sugar output for the 2025-26 season is projected to rise by 9% year-on-year to 27.12 million metric tons (MMT). This follows a report from India’s National Federation of Cooperative Sugar Factories Ltd., which has raised concerns about increased global supply, particularly as India is the world’s second-largest sugar producer. Meanwhile, May London ICE white sugar is inactive due to the UK market closure for Easter Monday.
The downward pressure on sugar prices is compounded by Brazil’s increased production, with Unica reporting a 0.7% year-on-year rise in the Center-South sugar output. Additionally, a stronger Brazilian real has limited export incentives for sugar producers, further contributing to the bearish sentiment. Analysts predict a global sugar surplus of 3.4 MMT for the 2026/27 crop year, following an 8.3 MMT surplus for 2025/26, which adds to the negative outlook.
Market professionals should closely monitor the evolving supply dynamics, particularly from India and Brazil, as these developments could significantly influence sugar pricing and trading strategies in the coming months.
Source: nasdaq.com