Sugar prices surged on Tuesday, with NY sugar up 2.59% and London sugar up 3.06%. A weaker dollar triggered short-covering in sugar futures. Global sugar surpluses and higher production have driven prices to multi-month and multi-year lows. Brazil, India, and Thailand are key players shaping the sugar market outlook.

Brazil’s sugar output rose 0.9% y/y through December, while India reported a 22% y/y increase in sugar production. India may allow more sugar exports to ease a domestic supply glut. Forecasts point to a global sugar surplus, with Brazil, India, and Thailand driving production increases.

Record sugar output in Brazil could further pressure prices, while smaller future sugar supplies from Brazil may offer support. Market analysts predict a mixed outlook for sugar prices based on global production estimates. Thailand’s sugar crop is expected to increase by 5% y/y, influencing global sugar market dynamics.

The USDA projects a record global sugar production for the 2025/26 season, with increases in human sugar consumption. Forecasts for Brazil, India, and Thailand show varying production outcomes. The global sugar market is complex, with multiple factors influencing supply and demand dynamics.

Read more at Yahoo Finance: Sugar Prices Gain as Dollar Weakness Spurs Short Covering