As of today, October NY world sugar #11 (SBV25) is down 0.14 (-0.84%) and October London ICE white sugar #5 (SWV25) is down 7.50 (-1.53%). This decline follows sustained long liquidation pressure after reaching a 2-month high earlier in the week.
According to Unica, Brazil’s Center-South sugar output decreased by 0.8% year-over-year to 3,614 MT in the second half of July, contributing to a 7.8% year-over-year drop in total crop output through July to 19,268 MT. Additionally, funds have increased their net-short positions in NY sugar futures by 25,923 to 151,004 positions, marking the highest short positions in nearly six years.
Concerns regarding rising sugar production in India could negatively impact sugar prices, as India is expected to allow local mills to export sugar this coming season, anticipating a significant crop increase. The Indian Meteorological Department reported monsoon rains at 500.8 mm, 4% above normal, and forecasts for 2025/26 sugar production in India project a 19% increase year-over-year to 35 MMT.
