As of today, October NY world sugar #11 (SBV26) has increased by +0.15 (+1.01%), while October London ICE white sugar #5 (SWV26) rose by +3.70 (+0.79%). These price hikes are attributed to a rise in crude oil prices, which have surged more than +2% to a five-week high, encouraging sugar mills globally to prioritize ethanol production over sugar due to its higher profitability.
Concerns about weak monsoon rains in India, where cumulative rainfall is currently 23% below normal, are also contributing to rising sugar prices. The Indian Meteorological Department cautioned that this year’s monsoon could be the weakest in over a decade. Furthermore, climate predictions indicating a strong El Niño weather pattern could affect global sugar yields from major producing regions, including Brazil and Thailand.
Recent data shows that the percentage of sugarcane used for sugar production in Brazil has dropped to 41.42%. This shift is reflected in lower projected sugar outputs for the 2026/27 season, with Brazil’s production set to decline by 3.0% to 42.5 million metric tons, while India’s output is expected to rise by 12% to 33.6 million metric tons driven by favorable conditions.
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