**Sugar Prices Surge to New Highs Amid Production Concerns**
On Friday, October NY world sugar #11 (SBV26) closed up 5.65%, marking a 10-month nearest-futures high, while October London ICE white sugar #5 (SWV26) rose 3.39% to an 11-month high. This spike is largely driven by worries over declining global sugar production, with the European Union and UK projected to produce just 14.98 million metric tons (MMT) this year, the lowest in 11 years, according to S&P Global Energy.
Brazil, as the largest sugar-producing country, reported a significant drop in production, with June sugar output down 26.3% year-over-year to 3.903 MMT, according to Unica. Global projections also point to a tightening supply, with Covrig Analytics expecting a global sugar deficit of 300,000 MT for the 2026/27 season, a significant shift from earlier surplus forecasts. India’s sugar output remains under scrutiny as monsoon rainfall is expected to be below normal, raising further doubts about future production in the world’s second-largest producer.
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