Sugar prices saw significant gains on Tuesday, with October NY world sugar #11 (SBV26) closing up 0.55 cents (+3.09%) and October London ICE white sugar #5 (SWV26) up 19.60 (+3.81%). This surge follows the International Sugar Organization’s (ISO) projection of a global sugar deficit of 200,000 metric tons for 2026/27, a stark contrast to a previously anticipated surplus of 1.1 million metric tons for 2025/26.
The ISO’s forecasts echo warnings from various analysts regarding declining sugar outputs due to adverse weather conditions. Notably, the European Union’s sugar production is expected to drop by 19% year-on-year for 2026/27, totaling 13.4 million metric tons. Additionally, Brazil’s June sugar production has already fallen 26.3% year-on-year, further tightening global sugar supplies amid ongoing drought concerns linked to an emerging El Niño weather pattern.
India’s Meteorological Department also noted a 14% deficit in cumulative monsoon rainfall as of August 31, impacting sugar production in the country, the world’s second-largest sugar producer. In response to market strains, India’s Directorate General of Foreign Trade announced the allowance for 1 million metric tons of raw sugar imports tax-free until October 31.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
