**Sugar Prices Decline Amid Supply Concerns**
On Friday, October NY world sugar #11 (SBV26) closed down by 1.31%, losing 0.22 cents per pound, while October London ICE white sugar #5 (SWV26) fell by 1.29%, decreasing 6.70 cents per ton. This decline follows a previous surge to 1.25-year highs earlier in the week, driven by long liquidations ahead of the weekend.
Czarnikow’s recent report predicts a global sugar deficit of 2.9 million metric tons (MMT) for 2027/28, attributing the expected decrease to reduced sugar cane and beet plantings, particularly due to adverse weather conditions in key production regions such as India, the EU, and Thailand. Notably, sugar production in the European Union and the UK is forecasted to decline to 14.98 MMT, the lowest in 11 years, while Brazil’s sugar production also fell sharply, down 26.3% year-on-year to 3.9 MMT in June, according to Unica. The broader implications of ongoing droughts and potential El Niño weather disruptions are causing market volatility and tighter future sugar supplies.
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