Sugar prices rallied on Thursday due to increased demand, with NY sugar up 2.03% and London sugar up 1.87%. China’s June sugar imports spiked by 1,435% to 420,000 MT. President Trump announced Coca-Cola’s switch to cane sugar from corn syrup could boost US sugar consumption by 4.4% to 11.5 MMT.

Speculation that India may increase sugar exports caused prices to drop to 3-week lows. India’s Meteorological Department reported a 6% above normal monsoon rain. Brazil’s dry weather pushed sugar mills to increase cane crushing, potentially adding 3.2 MMT of sugar to the market.

India projects a 19% y/y increase in sugar production for 2025/26, following a 17.5% y/y decline in 2024/25. Sugar prices have fallen due to expectations of a sugar surplus in the 2025/26 season, with projections of a 7.5 MMT global surplus. Reduced sugar production in Brazil and Thailand further impacts prices.

The International Sugar Organization forecasted a global sugar deficit of -5.47 MMT for 2024/25. The USDA projected a record 189.318 MMT of global sugar production for 2025/26. Brazil and India are expected to see production increases, contributing to a record 177.921 MMT in human sugar consumption.

Read more at Yahoo Finance: Demand Optimism Lifts Sugar Prices