Sugar prices are up today, with NY world sugar #11 and London ICE white sugar #5 both seeing gains. The rise is attributed to a 1% rally in WTI crude oil, prompting mild short covering in sugar futures. Stronger crude prices may lead to more cane crushing for ethanol production, reducing sugar supplies.

Brazil’s sugar production is expected to increase, leading to lower sugar prices. Unica reported a 16% rise in sugar output in the first half of August, with mills crushing more sugarcane for sugar production. Despite a decrease in cumulative sugar output, Brazil remains a key player in the global sugar market.

Brazil’s sugar mills are prioritizing sugar production over ethanol, leading to an increase in sugar supplies. As harvesting peaks, mills are producing more sugar due to drier cane crops. This trend is anticipated to continue, impacting global sugar prices.

The International Sugar Organization (ISO) forecasts a global sugar deficit for the 2025/26 season, the sixth consecutive year of deficits. The deficit is projected to improve from the previous year, with an increase in global sugar production and consumption. Sugar prices may be affected by these projections.

India’s sugar exports are expected to rise, potentially leading to lower sugar prices. The country’s Meteorological Department reported above-normal monsoon rains, indicating a bumper sugar crop. With an increase in sugar production projected for India, global sugar supplies are likely to be abundant.

Thailand’s sugar production is on the rise, adding to the global sugar surplus. The country reported a 14% increase in sugar production for the 2024/25 season. As one of the largest sugar exporters, Thailand’s production levels may impact global sugar prices.

Read more at Yahoo Finance: Strength in Crude Oil Lifts Sugar Prices