**Sugar Prices Decline Amid Strong Dollar and Global Supply Outlook**
As of today, March NY world sugar (#11) has decreased by 0.10 to $19.03 per pound, a drop of 0.52%, while March London ICE white sugar (#5) is down 5.50 to $513.80 per metric ton, a decline of 1.06%. These decreases are attributed to the strengthening U.S. dollar, which has reached a three-week high, and a general negative trend in sugar prices that has persisted for four months.
Notably, India announced that it would permit the export of 1 million metric tons of sugar this season after imposing restrictions since October 2023 to manage domestic supply. The International Sugar Organization (ISO) also revised its global sugar deficit forecast for 2024/25 to a lesser deficit of 2.51 million metric tons. In contrast, Thailand’s sugar production is expected to rise by 18% year-on-year, reaching 10.35 million metric tons in 2024/25, further pressuring sugar prices globally.
In Brazil, sugar production forecasts have been adjusted downward due to last year’s drought and wildfires affecting 80,000 hectares of sugarcane, resulting in a loss of around 5 million metric tons. The Brazilian government has cut its 2024/25 sugar production estimate from 46 million metric tons to 44 million metric tons. Meanwhile, the USDA projects global sugar production to increase by 1.5% year-on-year to a record 186.619 million metric tons for 2024/25.
