Sugar prices fell to 1.5-week lows on October 3, 2023, with NY world sugar #11 dropping 0.05 cents (0.28%) to $18.10 and December London ICE white sugar #5 declining by 3.40 cents (0.65%) to $26.59. The decline is attributed to weak physical demand, highlighted by a record delivery of 499,350 metric tons of sugar against the October London sugar contract, up 91% year-over-year.
The International Sugar Organization (ISO) has projected a global sugar deficit of 200,000 metric tons for the 2026/27 season, while other forecasts indicate a much larger potential shortfall of 1.7 million metric tons, driven by adverse weather conditions in major producing countries like Brazil and India. Brazil’s June sugar production fell 26.3% year-over-year, compounding concerns about global supply.
The USDA predicts a 6.5% decrease in global sugar production for 2026/27 to 184.854 million metric tons, while human sugar consumption is expected to rise by 0.4% to a record 179.991 million metric tons. This marks a significant shift in the sugar market landscape amidst changing weather patterns and economic conditions.
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