Sugar prices closed mixed on Tuesday due to a projected surplus of 1.625 million MT in 2025-26 by the International Sugar Organization, driven by increased production in India, Thailand, and Pakistan. Short covering emerged in London sugar as India considers boosting ethanol prices to reduce sugar supplies.

Last Friday, sugar prices hit 3-week highs with India allowing mills to export 1.5 MMT in 2025/26, less than earlier estimates of 2 MMT. Global sugar surplus estimates have risen to 8.7 MMT, impacting prices negatively. Brazil’s record sugar output contributes to bearish price outlooks.

India’s sugar production estimate was raised to 31 MMT for 2025/26, impacting prices negatively. Abundant monsoon rains in India may lead to a bumper sugar crop, increasing the potential for higher sugar exports. The outlook for higher sugar production in Thailand also weighs on prices.

The USDA projects a record global sugar production of 189.318 MMT in 2025/26, with an increase in human sugar consumption. Brazil and India are expected to see production boosts. The global sugar ending stocks are forecasted to rise by +7.5% y/y.

Read more at Yahoo Finance: Sugar Prices Weighed Down by the Prospects of Ample Global Supplies