On October 2, sugar prices showed mixed trading patterns with New York World Sugar #11 (SBV26) increasing by 0.34% to $17.52, while December London ICE White Sugar #5 (SWZ26) decreased by 0.16% to $515.40. This follows a decline that saw New York sugar reach a four-week low and London sugar fall to a 1.5-month low due to concerns over weak physical demand and an impending crop cut from Brazil’s sugarcane harvest.
A record 499,350 metric tons (MT) of sugar was delivered against the October London sugar contract, marking a 91% year-over-year increase and one of the largest deliveries for an October contract on record. In addition, funds boosted NY sugar long positions to 161,342 net long contracts, the highest in almost three years, indicating potential volatility in the coming weeks.
Forecasts for global sugar production remain grim, with the International Sugar Organization projecting a deficit of 200,000 MT for 2026/27, despite a prior surplus estimate of 1.1 million MT for 2025/26. Significant factors contributing to this include a potential drop in Brazil’s sugar output due to poor weather conditions, with projections indicating a 26.3% year-over-year decline in June production.
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