**Sugar Prices Experience Significant Rally Following Dollar Weakness**
On Tuesday, May NY world sugar #11 (SBK26) closed up by 1.46% ($0.20) and May London ICE white sugar #5 (SWK26) increased by 3.16% ($13.00). The uptick came after the dollar index ($DXY) dropped to a six-week low, prompting short covering in sugar futures.
Despite recent pressures due to abundant global supplies and India’s confirmation that there will be no sugar export bans this year, sugar prices are also responding to forecasted increases in production. India’s National Federation of Cooperative Sugar Factories Ltd. projects a 9% year-over-year rise in sugar production for the 2025-26 cycle, totaling 27.12 million metric tons (MMT). Additionally, Brazil’s sugar output is estimated at 40.25 MMT, up 0.7% year-over-year, according to Unica. The USDA forecasts global sugar production for 2025-26 to reach a record 189.318 MMT, with consumption expected to rise by 1.4% to 177.921 MMT.
