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On October 2, 2023, NY world sugar #11 (SBV25) closed down 1.16% at -0.19, while October London ICE white sugar #5 (SWV25) fell 0.94% to -4.50, marking a drop to one-week lows. The decline is attributed to Brazil’s sugar mills prioritizing sugar production over ethanol due to drier cane crops, a trend expected to persist as harvesting peaks.
Recent reports indicate a significant increase in sugar production in Brazil and India, with Brazil’s sugar output in the second half of July declining by 0.8% year-on-year to 3,614 MT, while sugar production in India is projected to rise by 19% in the 2025/26 season to 35 MMT, driven by larger planted cane acreage. Conversely, the International Sugar Organization forecasts a global sugar deficit of 5.47 MMT for 2024/25, indicating a tightening market.
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