Sugar prices are on the rise today, with NY sugar up 0.62% and London sugar up 0.86%. Pakistan’s plan to purchase 100,000 MT of sugar is boosting imports to stabilize domestic prices. Last week, Brazil’s sugar production surged, causing prices to fall. Dry weather in Brazil is driving mills to focus on sugar production over ethanol.

India may allow sugar mills to export in the upcoming season, leading to a negative outlook on prices. India’s monsoon rain is above normal, potentially resulting in a bumper sugar crop. Projections indicate a significant increase in India’s sugar production, contributing to a bearish market outlook for prices.

Sugar prices have been declining due to expectations of a surplus in the upcoming season. Reports suggest a global sugar surplus of 7.5 MMT, with production projected to increase by 4.7% y/y. Recent demand spikes, such as China’s significant rise in sugar imports and Coca-Cola’s switch to cane sugar in the US, are positive for prices.

Reduced sugar production in Brazil and Thailand is supporting sugar prices. Brazil’s output has fallen by 9.2% y/y, while Thailand’s production rose by 14% y/y. The International Sugar Organization predicts a global sugar deficit, indicating a tightening market after a previous surplus.

The USDA forecasts a record sugar production in the upcoming season, with global consumption also on the rise. Brazil and India are expected to lead in production increases, while Thailand’s output is projected to climb as well. These factors contribute to a bearish outlook for sugar prices.

Read more at Yahoo Finance: Stronger Sugar Demand from Pakistan Boosts Sugar Prices