Sugar prices closed lower on Friday due to higher Brazilian sugar output, with Unica reporting a 16% y/y increase in sugar output in the first half of August. The ISO forecasts a global sugar deficit for the 2025/26 season, but sugar prices have been under pressure due to lower production outlooks in Brazil.

The outlook for higher sugar exports from India may further impact sugar prices, as Bloomberg reported that India may permit local sugar mills to export sugar in the next season. India’s sugar production is projected to increase, with a potential surplus in the 2025/26 season.

Expectations of a sugar surplus in the 2025/26 season have pushed sugar prices lower, with projections of a 7.5 MMT global sugar surplus. The USDA predicts record sugar production and ending stocks for the same period, impacting global sugar prices.

Thailand’s increased sugar production, as reported by the Office of the Cane and Sugar Board, adds to the bearish outlook for sugar prices globally. With Thailand being a major sugar producer and exporter, this increase in production could further impact sugar prices in the market.

Read more at Yahoo Finance: Sugar Prices Fall on Higher Brazil Sugar Output