**Sugar Prices Surge Amid Supply Disruptions**
On Tuesday, May NY world sugar #11 (SBK26) closed at $15.91 per pound, up 2.32% (+0.36), while May London ICE white sugar #5 (SWK26) closed at $462.20 per metric ton, climbing 3.10% (+13.90). This marked a five-month high for NY sugar and a 5.5-month high for London sugar. The price increase is attributable to a 4% rise in crude oil prices, which is expected to incentivize sugar mills to shift focus towards ethanol production, potentially reducing sugar supply.
Furthermore, the closure of the Strait of Hormuz has restricted 6% of the world’s sugar trade, contributing to tight supplies. Analysts project a global sugar surplus of 3.4 million metric tons (MMT) for the 2026/27 crop year. In Brazil, a decline of 36% year-over-year in sugar production for January contributes to rising prices, while India’s forecast for sugar production in 2025/26 is projected to reach 29.3 MMT, a 12% increase.
