Sugar prices increased on March 14, 2023, with May NY world sugar #11 closing up 1.83% at +0.26 and May London ICE white sugar #5 rising 2.97% at +12.30. This surge comes as higher crude oil prices, which rose over 2% the same day, prompted sugar mills globally to shift towards increased ethanol production, impacting sugar supplies.
Earlier in the month, sugar prices hit a 5.25-year low, driven by concerns over a global sugar surplus. Analysts forecast a surplus of 3.4 million metric tons (MMT) for the 2026/27 crop year, following an expected surplus of 8.3 MMT in 2025/26. The International Sugar Organization (ISO) has predicted a 1.22 MMT surplus for 2025/26, attributing this growth to higher production in India, Thailand, and Pakistan, with global production projected to rise by 3% year-over-year.
