On Thursday, July NY world sugar #11 (SBN26) closed down by 1.88% to $13.55, matching a 1.75-month low, while August London ICE white sugar #5 (SWQ26) dropped by 1.53% to $443.10. The declines are attributed to a strong dollar, which is at a 13-month high, and a slump in WTI crude oil prices, falling to a 3.5-month low.
Concerns over India’s sugar crop have further impacted sugar prices, with the Indian Meteorological Department reporting a 38% deficit in cumulative monsoon rainfall as of June 17. El Niño conditions could exacerbate dry weather, affecting major sugar-producing countries like Brazil and Thailand. The USDA anticipates a global sugar production decline for 2026/27, estimating a deficit of 262,000 MT largely due to these climatic concerns.
Additionally, sugar trader Czarnikow has revised its 2026/27 global sugar balance estimate from a surplus of 1.4 MMT to a deficit of 100,000 MT, mainly due to increased ethanol production in Brazil at the expense of sugar output.
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