Sugar prices plummet due to weak demand and ample supplies, with projections showing a global surplus

From Yahoo Finance: 2025-07-01 12:27:00

Sugar prices plummeted with NY Oct sugar hitting a contract low and London sugar at a 1.5-week low. Weak demand and expectations of increased supplies drove the decline. A recent projection by Czarnikow forecasts a global sugar surplus of 7.5 MMT for 2025/26, the largest in 8 years. The USDA predicts a record 189.318 MMT of global sugar production for 2025/26.

India’s sugar production is expected to rise by 19% in 2025/26, while Brazil is projected to increase production by 2.3%. Thailand’s sugar output is also set to climb by 2%. In contrast, India’s sugar exports are expected to fall to 800,000 MT in 2024/25. Thailand’s sugar production rose by 14% in 2024/25, further contributing to the bearish outlook on sugar prices.

Brazil’s sugar production is down by 14.6% in 2025/26 due to adverse weather conditions. The International Sugar Organization forecasts a global sugar deficit of -5.47 MMT for 2024/25, highlighting a tightening market. The USDA projects a record-high sugar production for 2025/26, with human consumption also expected to increase.



Read more at Yahoo Finance: Sugar Prices Plummet on Weak Demand and Ample Supplies