Sugar prices rose today due to a weaker dollar, with NY sugar up 1.60% and London sugar up 0.74%. Global sugar supplies are ample, with projections of a sugar surplus in 2025/26. Brazil’s sugar output is up, India may have a bumper crop, and Thailand expects higher production, all contributing to bearish price outlooks.

Recent reports show Brazil’s sugar output is increasing, with Center-South output up 15.7% y/y. India’s monsoon season has been strong, leading to expectations of a 19% increase in sugar production. India may divert 4 MMT of sugar to ethanol production, further impacting global sugar markets.

Thailand predicts a 5% y/y increase in sugar production, following a 14% rise last year. Signs of lower sugar content in Brazil’s sugarcane have led to short covering in sugar futures. The International Sugar Organization forecasts a global sugar deficit for the 2025/26 season, with production and consumption both expected to rise.

The USDA projects record global sugar production and consumption in 2025/26, with Brazil and India leading in production increases. Ending stocks are expected to rise, contributing to a bearish outlook for sugar prices. The market remains volatile, with various factors impacting sugar futures.

Read more at Yahoo Finance: Sugar Prices Rebound Due to a Weak Dollar