Sugar prices closed lower in both New York and London, with speculation of increased Indian sugar exports. India may permit local mills to export sugar due to abundant monsoon rains. Brazil’s sugar production outlook is also weighing on prices, with increased cane crushing diverting more towards sugar production.

Expectations of higher sugar production in Brazil and India are driving prices lower, with projections of significant surpluses in the upcoming season. China’s increased sugar imports and potential rise in US sugar consumption are supporting prices. Reduced sugar production in Brazil due to weather conditions is also impacting prices.

Thailand’s higher sugar production is adding bearish pressure on sugar prices, as the country is the third-largest sugar producer globally. The International Sugar Organization forecasts a global sugar deficit for 2024/25, tightening the market after a previous surplus. The USDA projects record sugar production and consumption for 2025/26, with increased ending stocks globally.

The USDA’s bi-annual report released on May 22 forecasts record sugar production and consumption for 2025/26, with increased ending stocks globally. Brazil and India are expected to see significant increases in sugar production, while Thailand’s production is also projected to rise. Rich Asplund does not have any positions in the mentioned securities.

Read more at Yahoo Finance: Prospects of Higher Indian Sugar Exports Weigh on Prices