May NY world sugar #11 (SBK26) fell by -0.15 (-0.96%) today, while May London ICE white sugar #5 (SWK26) dropped by -1.80 (-0.40%). The decline in sugar prices is attributed to a more than -7% drop in crude oil prices, which may lead sugar mills to decrease ethanol production and increase sugar output.
Supply disruptions from the closure of the Strait of Hormuz have cut approximately 6% from the world’s sugar trade, leading analysts to predict a global sugar surplus of 3.4 million metric tons (MMT) in the 2026/27 crop year. In Brazil, sugar production in the Center-South fell by -36% year-over-year for the second half of January, while India’s sugar output is projected to increase by 12% year-over-year to 29.3 MMT for the 2025/26 season. India’s government recently approved an additional 500,000 MT of sugar for export, on top of 1.5 MMT approved in November.
