Sugar prices closed lower on Monday due to higher Indian sugar output and falling crude oil prices. India reported a 28% increase in sugar production, while Brazil raised its sugar production estimate. The International Sugar Organization forecasted a surplus in 2025-26, with global sugar production expected to rise by 3.2% year-over-year.

The bearish outlook for sugar prices continues as India and Thailand are projected to increase sugar production. India’s 2025/26 sugar production estimate was raised by 18.8% year-over-year, potentially allowing for more sugar exports. India’s monsoon season has been strong, leading to a projected bumper sugar crop.

India’s decision to allow mills to export 1.5 MMT of sugar in the 2025/26 season, below earlier estimates, provides support for sugar prices. Meanwhile, Thailand is also expected to increase its sugar production for the upcoming season, contributing to bearish sentiment in the market.

According to the USDA’s bi-annual report, global sugar production is expected to reach a record high in 2025/26, with increases in human sugar consumption and ending stocks. Brazil and India are projected to see significant growth in sugar production, driven by favorable weather conditions and increased acreage. Thailand is also expected to increase its sugar production in the upcoming season.

Read more at Yahoo Finance: Sugar Prices Pressured as India Boosts Sugar Production and Crude Oil Declines