**Sugar Prices Rise Amid El Niño Concerns**
On Friday, sugar prices increased significantly: July NY world sugar #11 (SBN26) rose by 0.13 cents (+0.93%), and Aug London ICE white sugar #5 (SWQ26) climbed by 12.50 cents (+2.94%). This uptick was driven by fears that an emerging El Niño weather pattern could negatively impact the monsoon season in India, prompting a reduction in rainfall estimates for June-September from 92% to 90% of the long-term average.
The National Oceanic and Atmospheric Administration (NOAA) suggests an 82% chance of El Niño conditions emerging between May and July, which may disrupt sugar production in India, Brazil, and Thailand. Concerns about a potential global sugar deficit are growing, with the International Sugar Organization forecasting a shortfall of 262,000 metric tons for the 2026/27 season. In addition, India’s ban on sugar exports, effective until September 30, is expected to further tighten global supplies.
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