October NY world sugar #11 (SBV25) is down -1.66%, and October London ICE white sugar #5 (SWV25) is up +0.51%. Prices dropped after reaching a 2-month high due to long liquidation. Reports of reduced cane yields from Brazil may lower sugarcane production below 600 MMT. Funds have increased their net-short positions in NY sugar futures.

Sugar prices fell to 5-week lows on signs of stronger sugar production in Brazil. Brazil’s Center-South sugar output rose +15% y/y to 3.4 MMT. India may permit local sugar mills to export sugar in the next season due to abundant monsoon rains. India’s sugar production is projected to increase by +19% y/y to 35 MMT.

NY sugar prices fell to a 4.25-year low driven by expectations of a sugar surplus in the 2025/26 season. A 7.5 MMT global sugar surplus is projected for the season. Brazil’s sugar production has decreased, while Thailand’s production has risen. The International Sugar Organization forecasted a global sugar deficit.

The USDA predicts global 2025/26 sugar production to increase to a record 189.318 MMT, with rising human sugar consumption. Brazil and India are expected to have increased sugar production, while Thailand’s production will also rise. The outlook for sugar prices remains mixed based on global production and consumption forecasts.

Read more at Yahoo Finance: Sugar Prices Fall Back From Tuesday’s 2-month High