Sugar prices closed mixed on Tuesday, with London sugar hitting a 2.5-month low. NY sugar rebounded slightly due to short covering after the Brazilian real surged to a 20-month high, dampening export sales. Global sugar production pressure prices, with Brazil’s output up +0.9% y/y and India’s up +22% y/y.

India’s sugar output is up +22% y/y to 15.9 MMT, with a forecast of 31 MMT for 2025/26. The country may increase sugar exports after cutting ethanol production estimates. Brazil forecasts record sugar production at 45 MMT for 2025/26.

A bearish outlook on sugar prices is due to higher global production, with a surplus projected. India, Thailand, and Pakistan are driving the surplus, with a 3.2% y/y rise in global sugar production. Brazil’s sugar output is expected to fall in 2026/27, supporting prices.

Higher future sugar supplies from Brazil may impact prices, with a projected fall in production and exports. The International Sugar Organization forecasts a surplus in 2025-26, driven by India, Thailand, and Pakistan. The USDA predicts record global sugar production and consumption for 2025/26.

Read more at Yahoo Finance: NY Sugar Finishes Slightly Higher as the Brazilian Real Rallies