**May NY world sugar #11 (SBK26) rose by 1.11% today, up +0.15, while Aug London ICE white sugar #5 (SWQ26) increased by 1.50%, up +6.20.** The uptick in sugar prices follows a 2% rally in crude oil prices, which has led to increased short covering in sugar futures. Analysts suggest that higher crude prices could compel global sugar millers to shift more cane towards ethanol production rather than sugar, potentially tightening sugar supplies.
On Wednesday, the May London sugar contract expired with a record 472,650 metric tons delivered, the highest for a May contract in 14 years, indicating weak demand amidst a forecasted global sugar surplus of 3.4 million metric tons for the 2026/27 crop year. This follows expectations of a surplus of 8.3 million metric tons in 2025/26, driven by increased sugar output in major producing countries like India and Brazil.
