Sugar prices closed unchanged and slightly higher in New York and London, respectively, on Thursday. Recent gains were bolstered by positive news from India’s food ministry, considering higher ethanol prices to reduce sugar supplies. However, the International Sugar Organization predicts a surplus in 2025-26 due to increased production in key countries like India, Thailand, and Pakistan.

The global sugar market outlook remains bearish, with prices hitting multi-year lows due to record production in Brazil. Brazil’s sugar output is expected to reach 45 MMT, further impacting prices. India and Thailand also forecast higher sugar crops, adding to the surplus. The USDA projects a significant increase in global sugar production and ending stocks for 2025-26.

India’s sugar production estimate has been revised upward, leading to expectations of increased exports. Favorable monsoon rains in India and Thailand are driving higher production forecasts, contributing to the bearish sentiment in the sugar market. With record global sugar production on the horizon, prices are likely to remain under pressure in the near term.

Read more at Yahoo Finance: Sugar Prices Finish Little Changed Amid Consolidation