Sugar prices today are slightly lower due to strength in the dollar (DXY00) and the outlook for Brazil’s sugar mills to increase production. Covrig Analytics reported that Brazil’s sugar mills are prioritizing sugar production over ethanol, crushing more cane for sugar as harvesting peaks.

China’s July sugar imports surged +76% to 740,000 MT, and Pakistan recently tendered for 200,000 MT of refined sugar, providing some support for sugar prices amid signs of stronger global sugar demand.

India may permit local sugar mills to export sugar in the next season, starting in October, as abundant monsoon rains may produce a bumper sugar crop. The Indian Sugar and Bio-energy Manufacturers Association recently said it will seek permission to export 2 MMT of sugar in 2025/26, further impacting prices.

NY sugar rallied to a 2.5-month high on concerns over weaker cane yields in Brazil. However, the percentage of sugarcane crushed for sugar by Brazil’s sugar mills increased to 54.10% from 50.32% last year. Brazil’s government crop forecasting agency reported a -3.4% y/y decline in 2024/25 Brazil sugar production due to drought and excessive heat.

Read more at Yahoo Finance: Sugar Prices Slightly Lower on Prospects for Higher Brazil Output