Global Sugar Prices Surge Due to Increased Demand

Sugar prices surged with NY sugar reaching a 1-week high and London sugar hitting a 1.5-month high. Global sugar supply concerns led to short covering after Pakistan announced plans to import 500,000 MT of sugar and the Philippines planned to import 424,000 MT.

Expectations of a global sugar surplus have caused prices to plummet over the past three months. The USDA projected a 7.5 MMT global sugar surplus for the 2025/26 season, the largest surplus in 8 years, with global sugar production forecasted to increase by +4.7% y/y.

India’s sugar production is expected to rise +19% y/y to 35 MMT, while Brazil and Thailand are also projected to increase sugar output. India’s 2024/25 sugar production is forecasted to fall by -17.5% y/y, leading to reduced export expectations.

Thailand reported a 14% y/y increase in sugar production, while Brazil’s sugar output decreased by -3.4% y/y. The International Sugar Organization raised its 2024/25 global sugar deficit forecast to a 9-year high, indicating a tightening market.

The USDA projected a +4.7% y/y increase in global sugar production for the 2025/26 season, with global sugar ending stocks expected to rise +7.5% y/y. Rich Asplund did not have positions in any securities mentioned. This information is for informational purposes only.

Read more at Yahoo Finance: Strength in Global Demand Boosts Sugar Prices