As of today, May NY world sugar #11 (SBK26) has decreased by -0.41 points (-3.00%), reaching a 5.5-year nearest-futures low. The drop is attributed to a 12% plunge in crude oil prices, which could lead sugar millers to increase sugar production by diverting more cane crushing away from ethanol.
Additionally, the reopening of the Strait of Hormuz has reduced global shipping concerns, further impacting sugar prices amid expectations of abundant global supplies and weak demand. The recent expiration of the May London sugar contract saw 472,650 metric tons delivered, marking the highest for a May contract in 14 years, indicative of sluggish demand.
In Brazil, cumulative sugar output for the 2025-26 season rose by 0.7% year-on-year to 40.25 million metric tons. The USDA predicts global sugar production for 2025-26 will reach a record 189.318 million metric tons, with India’s sugar production expected to grow by 25% to 35.25 million metric tons, driven by favorable monsoon rains and increased acreage.
