Sugar prices in NY and London are up, with NY reaching a 2-month high due to smaller sugar supplies from Brazil. Funds have a significant short position, potentially causing a short-covering rally. However, sugar prices fell last week on news of stronger sugar production in Brazil.

India may permit sugar mills to export sugar in the upcoming season, leading to a negative outlook for sugar prices. On the other hand, the forecast for higher sugar production in India could further depress prices. Global sugar surplus projections have also kept prices under pressure.

Reduced sugar production in Brazil and Thailand, along with a projected global sugar deficit, indicate a tightening market. The USDA projects record sugar production and consumption for 2025/26, with increased production expected in Brazil, India, and Thailand. The sugar market outlook remains uncertain amid fluctuating supply and demand dynamics.

Read more at Yahoo Finance: Sugar Prices Continue Higher After Reports of Lower Cane Yields in Brazil