Sugar prices are down today due to expectations of larger supplies from India, with a 43% year-over-year increase in sugar production reported. Record sugar output in Brazil is also contributing to lower prices. On the bullish side, India’s food ministry is considering raising ethanol prices, potentially reducing sugar supplies.

However, the International Sugar Organization forecasts a 1.625 million MT surplus for 2025-26, driven by increased production in India, Thailand, and Pakistan. Despite support from India’s decision to limit sugar exports, the global sugar surplus is leading to lower prices. Czarnikow raised its global 2025/26 sugar surplus estimate to 8.7 MMT.

Signs of a larger sugar crop in India, with a projected 18.8% year-over-year increase in production, are further pressuring prices. Additionally, abundant monsoon rains may result in a bumper crop. The outlook for higher sugar exports from India, Thailand, and Brazil, along with record global sugar production projections, is contributing to the bearish sentiment in the sugar market.

Read more at Yahoo Finance: Sugar Prices Pressured by the Outlook for Bigger Supplies from India