As of today, May NY world sugar #11 (SBK25) has decreased by $0.06 (-0.32%), while May London ICE white sugar #5 (SWK25) is down $3.30 (-0.62%), amid growing concerns over sugar demand. On February 28, sugar prices hit a 6-week low, influenced by record deliveries of 1.7 million metric tons of raw sugar from traders Wilmar International Ltd and Sucres et Denrees SA against the March futures contract.
Additionally, the International Sugar Organization (ISO) has revised its global sugar deficit forecast for 2024/25 to -4.88 million metric tons, an increase from the previous estimate of -2.51 million metric tons. Meanwhile, a decline in India’s sugar production by 14% year-over-year to 21.98 million metric tons in the current marketing year is providing some market support.
Contrarily, projected increases in sugar production from Brazil and Thailand continue to exert downward pressure on prices. Brazil’s government crop forecasting agency Conab has reduced its 2024/25 sugar production estimate to 44 million metric tons, while Thailand’s Office of the Cane and Sugar Board forecasts a production rise to 10.35 million metric tons, indicating an overall competitive market ahead.
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