Sugar prices closed lower on Thursday as crude oil prices fell, impacting ethanol prices. Increased sugar production in India and Brazil has pushed prices to 3-week lows, with India reporting a 43% increase in sugar production. Brazil is also expected to have record sugar output, leading to a bearish market. The International Sugar Organization forecasts a 1.625 million MT sugar surplus in 2025-26, driven by India, Thailand, and Pakistan. Global sugar production is expected to rise by 3.2% y/y to 181.8 million MT in 2025-26, causing a surplus. India’s larger sugar crop is expected to boost exports, with the country projecting a 31 MMT production, up 18.8% y/y. India’s monsoon rains have been strong, leading to a projected 19% y/y increase in sugar production to 34.9 MMT in 2025-26. Strong monsoon rains in India have also led to an increase in planted cane acreage, contributing to the higher sugar production forecast. The USDA projects a record global sugar production of 189.318 MMT and an increase in consumption to 177.921 MMT in 2025-26. Brazil’s sugar production is expected to rise by 2.3% y/y to 44.7 MMT, India’s by 25% y/y to 35.3 MMT, and Thailand’s by 2% y/y to 10.3 MMT in the same period.

Read more at Yahoo Finance: Sugar Prices Fall as Crude Oil Slumps