Sugar prices fell to 1-week lows due to Brazil’s increased sugar production. Unica reported a +18% y/y rise in Brazil’s Center-South sugar output in August, while the sugarcane crushed for sugar increased to 54.20%. India may export 4 MMT of sugar in 2025/26, fueling the bearish trend. Funds’ short positions in NY sugar surged, potentially leading to a short-covering rally. Brazil’s prioritization of sugar production over ethanol is driving lower sugar prices. The prospect of higher sugar exports from India and a forecasted global sugar deficit contribute to the bearish outlook for sugar prices. Brazil and India are expected to increase sugar production, further weighing on prices. Thailand also anticipates increased sugar production, adding to the oversupply concerns. The USDA projects record sugar production for 2025/26, exacerbating the surplus and keeping sugar prices low. India’s favorable conditions for sugar production and Thailand’s rising sugar output contribute to the bearish sentiment.

Read more at Yahoo Finance: Sugar Prices Tumble as Brazil Ramps Up Sugar Output