Sugar prices are sliding today, with London sugar hitting a new 4-year low. The decline is due to ramped-up sugar production in Brazil, with Center-South sugar output rising by 18% in the second half of August. India’s plans to divert 4 MMT of sugar for ethanol production are adding to the bearish sentiment. The International Sugar Organization forecasts a global sugar deficit for the 2025/26 season, but projections show an increase in global sugar production and consumption. Expectations for abundant sugar supplies are bearish for prices, especially with higher sugar exports expected from India and increased production in Thailand.

The outlook for higher sugar production in India and Thailand, along with revised production estimates in Brazil, are contributing to the bearish sentiment in the sugar market. The USDA projects record global sugar production for 2025/26, leading to an increase in ending stocks. Abundant monsoon rains in India are expected to boost sugar production, while Thailand remains a key player in the sugar market. The overall outlook is negative for sugar prices, as global supplies continue to outweigh demand.

Read more at Yahoo Finance: Sugar Prices Weighed Down by Abundant Global Supplies