Sugar prices tumble due to global surplus, with record production projected; negative.

From Yahoo Finance: 2025-06-26 12:40:00

Sugar prices dropped significantly today, with NY sugar hitting a 4-year low due to expectations of a global surplus. The USDA predicted a record 2025/26 sugar production of 189.318 MMT with a surplus of 41.188 MMT. India, Brazil, and Thailand are expected to see increased sugar production, further pressuring prices.

India’s 2025/26 sugar production is projected to increase by 19% to 35 MMT, driven by favorable monsoon rains. Brazil and Thailand are also expected to see production rises, contributing to an oversupply. India’s decision to allow sugar exports may alleviate some pressure on domestic supplies.

Thailand reported a 14% increase in sugar production for 2024/25, adding to the global oversupply. Pakistan plans to import 250,000 metric tons of raw sugar due to a disappointing sugarcane harvest, potentially increasing sugar prices. Brazil’s sugar production has decreased, providing some support to prices.

The International Sugar Organization raised its 2024/25 global sugar deficit forecast to -5.47 MMT, indicating a tightening market after a surplus in 2023/24. The USDA projected a record sugar production and ending stocks for 2025/26, highlighting the surplus issue. Global sugar consumption is expected to rise as well.



Read more at Yahoo Finance: Sugar Prices Tumble on an Expected Global Sugar Surplus