Sugar prices are on the rise today, with October NY world sugar #11 up +0.49% and October London ICE white sugar #5 up +0.28%. This increase is due to a rally in crude oil prices prompting short covering in sugar futures and potential diversion of cane crushing towards ethanol production in the face of rising oil prices. India may allow local sugar mills to export sugar next season due to abundant monsoon rains, potentially leading to a bumper crop. Brazil is expected to increase sugar production, adding 3.2 MMT to the market. India projects a 19% increase in sugar production for 2025/26.

Global sugar prices have been falling, driven by expectations of a sugar surplus in the 2025/26 season. Recent signs of increased sugar demand, including a significant surge in China’s sugar imports and Coca-Cola’s decision to use cane sugar in the US, are positive indicators for sugar prices. Reduced sugar production in Brazil is also contributing to price support. However, higher sugar production forecasts in India and Thailand are bearish for prices. The International Sugar Organization raised its global sugar deficit forecast to a 9-year high, indicating a tightening market.

Read more at Yahoo Finance: Sugar Prices Supported by Strength in Crude Oil