Sugar prices closed higher on Monday, with NY world sugar #11 up +0.13% and London ICE white sugar #5 up +0.60%. The Brazilian real’s strength prompted short covering in sugar futures, discouraging export sales from Brazil. Last week, India reported a 25% increase in sugar production, impacting global prices.

India may permit additional sugar exports to reduce a domestic supply glut, potentially influencing global sugar prices. The country introduced a quota system for sugar exports in 2022/23 due to limited domestic supplies. Brazil is also expected to see a decrease in sugar production in the upcoming year.

The outlook for sugar production in Brazil remains bearish for prices, with estimates showing a potential surplus in the market. The International Sugar Organization forecasts a surplus driven by increased production in India, Thailand, and Pakistan. Global sugar production is expected to rise in the upcoming year.

Thailand is projected to see a 5% increase in sugar production for the 2025/26 season, adding to the bearish outlook for sugar prices. The USDA’s bi-annual report also predicts a record high in global sugar production for the upcoming year. Brazil and India are expected to lead the way in increased sugar production.

Overall, sugar prices have been fluctuating due to various factors impacting production and exports in major sugar-producing countries. The market is closely watching developments in Brazil, India, and Thailand to gauge the future direction of sugar prices. Global production and consumption trends will continue to influence market dynamics.

Read more at Yahoo Finance: Sugar Prices Settle Higher as Brazilian Real Strength Spurs Short Covering