**Sugar Prices Decline Amid Weather Concerns and Changing Production Dynamics**
On Monday, October NY world sugar #11 closed at $14.76, down 0.87%, and Aug London ICE white sugar #5 closed at $4.61, down 0.86%, marking two-week lows. This decline follows improved monsoon rains in India, which have lessened concerns about reduced sugar yields; cumulative rainfall was reported at 19% below normal as of July 13, compared to a previous low of 42% below normal on June 30.
In Brazil, sugar production for 2026/27 is projected to decrease by 2% year-over-year to 6.838 million metric tons, as millers shift focus to ethanol production. The portion of sugarcane allocated for sugar has dropped from 50.09% to 41.42%. Additionally, the emergence of an El Niño weather pattern poses risks to sugar production in key regions like India and Thailand, further impacting global supply forecasts for 2026/27, which may yield a deficit of 262,000 metric tons.
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