On Wednesday, May NY world sugar #11 (SBK26) closed at $15.31, down 1.48%, while May London ICE white sugar #5 (SWK26) finished at $440.20, a decline of 1.43%. Sugar prices fell to a two-week low influenced by a 1% drop in crude oil prices, which may incentivize sugar mills to increase sugar production over ethanol, potentially raising sugar supplies.
Brazil’s sugar production for the 2025-26 season rose by 0.7% year-on-year to 40.25 million metric tons (MMT), driven by an increase in cane crushing. Concurrently, India’s sugar output from October to mid-March increased by 10.5% to 26.2 MMT. The USDA projects global sugar production for 2025-26 to hit a record 189.3 MMT, while human sugar consumption is expected to rise by 1.4% to 177.9 MMT.
The International Sugar Organization forecasts a sugar surplus of 1.22 MMT for 2025-26, primarily due to increased production in India, Thailand, and Pakistan. Additionally, India has approved an additional 500,000 MT of sugar exports for the ongoing season, emphasizing the country’s role as the world’s second-largest sugar producer.
