Sugar prices closed higher on Thursday, with NY sugar up 0.70% and London sugar up 0.11%. A weak dollar sparked short-covering. The global sugar surplus is expected, with projections of 10.5 MMT and 4.1 MMT for 2025/26. Brazil’s sugar output increased by 10.8% y/y, and India’s monsoon rains may lead to a bumper crop.

India’s sugar production is projected to increase by 19% y/y to 34.9 MMT in 2025/26 due to favorable weather conditions. However, India may divert 4 MMT of sugar to ethanol production, potentially leading to higher exports. Thailand also expects a 5% increase in sugar production in 2025/26.

Brazil’s sugar content from the current crush is lower than last year, leading to a short-term rise in sugar prices. The International Sugar Organization forecasts a global sugar deficit of -231,000 MT for 2025/26. The USDA predicts record sugar production and consumption for the same period, with Brazil and India leading in production.

Read more at Yahoo Finance: Dollar Weakness Sparks Short-Covering in Sugar Futures