Sugar prices are down today, with NY world sugar #11 falling by 0.56% and London ICE white sugar #5 dropping by 0.65%. The Indian Sugar and Bio-energy Manufacturers Association requested permission to export 2 MMT of sugar in the 2025/26 season, leading to the pressure on prices due to the surplus production.

Brazil’s sugar production is expected to increase, contributing to the recent drop in sugar prices. Unica reported a +16% y/y rise in Brazil’s Center-South sugar output in August, with mills prioritizing sugar production over ethanol. However, cumulative sugar output for the 2025-26 season is down -4.7% y/y.

The International Sugar Organization forecasts a global sugar deficit of -231,000 MT for the 2025/26 season, improving from the previous year. Conab, Brazil’s crop forecasting agency, reduced its 2025/26 sugar production estimate by 3.1% due to lower sugarcane yields. Expectations of abundant sugar supplies are driving prices down.

India’s sugar production is projected to increase by +19% y/y, following a decline the previous year. Thailand also saw a rise in sugar production, contributing to the bearish outlook on sugar prices. The USDA predicts a record global sugar production for 2025/26, further impacting prices negatively.

Read more at Yahoo Finance: Sugar Prices Fall as India Seeks to Boost Sugar Exports