Sugar Prices Surge on Strong Global Demand

Sugar prices surged on Wednesday, with NY sugar hitting a 1-week high and London sugar reaching a 1.5-month high due to concerns over global sugar supply tightening. Pakistan plans to import 500,000 MT of sugar, while the Philippines will import 424,000 MT. Last week, sugar prices hit contract lows, with projections of a 7.5 MMT global sugar surplus for 2025/26. India expects a +19% y/y increase in sugar production, potentially leading to a bumper crop due to above-normal monsoon forecasts. Brazil is projected to have record sugar production, further contributing to the negative outlook for sugar prices. India has allowed its sugar mills to export 1 MMT of sugar this season, easing previous export restrictions. The ISMA projects a -17.5% y/y drop in India’s sugar production for 2024/25. Thailand’s sugar production rose +14% y/y, adding to the bearish outlook for sugar prices. Brazil’s reduced sugar production is providing some support to sugar prices. The International Sugar Organization raised its global sugar deficit forecast for 2024/25 to a 9-year high, indicating a tightening market. The USDA projects record sugar production and consumption for 2025/26, with global ending stocks expected to increase.

Read more at Yahoo Finance: Sugar Prices Jump on Signs of Stronger Global Demand