**Sugar Prices Surge Amid Production Reports**
On Wednesday, May NY world sugar #11 (SBK26) closed up 0.35 cents (+2.42%), marking a 1.5-month high, while May London ICE white sugar #5 (SWK26) rose by 11.40 cents (+2.68%), reaching a 4.75-month high. This increase is attributed to soaring gasoline prices, now at a 3.5-year high, which may encourage sugar mills to shift production toward ethanol.
Despite recent price rallies, analysts are concerned about a looming global sugar surplus. For the 2025/26 crop year, sugar trader Czarnikow projects a surplus of 3.4 million metric tons, following an 8.3 million metric ton surplus in 2025/26. Additionally, the USDA anticipates a record global sugar production of 189.318 million metric tons in 2025/26, up 4.6% year-on-year, with India’s production expected to rise by 25% to 35.25 million metric tons, largely due to favorable rain patterns and increased acreage.
