As of October 4, 2023, sugar prices are experiencing declines, with New York world sugar #11 (SBV24) slipping by 2.11% to $18.21 and London ICE white sugar #5 (SWV24) down 1.45% to $516.80. This downward trend follows reports indicating that Brazil’s sugar production rose by 8% year-over-year to 20.753 million metric tons for the marketing year through July.
Meanwhile, the Indian Meteorological Department has noted that monsoon rains have surpassed historical averages, which is expected to boost India’s sugar crop. India received 579.7 mm of rain as of August 11, 2023, a 7% increase over the long-term norm. The Indian Sugar and Bio-energy Manufacturers Association has indicated that India holds a sugar reserve of 9.1 million metric tons.
Global sugar production forecasts remain strong, with Brazil’s Conab projecting a 1.3% increase to a record 46.292 million metric tons for the 2024/25 marketing year. Conversely, the International Sugar Organization has updated its global sugar deficit estimate to -2.95 million metric tons for 2023/24.
