**Sugar Prices Decline Amid Crude Oil Plunge**
On Tuesday, May NY world sugar #11 (SBK26) closed down by 1.44%, or -0.21, while May London ICE white sugar #5 (SWK26) dropped by 0.50%, or -2.10. The decline in sugar prices follows an 11% drop in crude oil prices, which has prompted sugar mills to shift production from ethanol to sugar, subsequently increasing sugar supply.
According to analysts, a global sugar surplus is anticipated, with projections indicating a surplus of approximately 3.4 million metric tons in the 2026/27 crop year. Additionally, the International Sugar Organization forecasts a 3% year-over-year rise in global sugar production to 181.3 million metric tons for the 2025-26 period, primarily driven by increased output from India, Thailand, and Pakistan.
