May New York world sugar #11 (SBK26) closed at a 5-month high of +0.33 (+2.15%) on Friday, while May London ICE white sugar #5 (SWK26) increased by +0.20 (+0.04%). The rally in sugar prices was largely driven by soaring gasoline prices, which rose over 5% to a 3.5-year high, prompting sugar mills to consider increasing ethanol production. Additionally, the closure of the Strait of Hormuz has impacted roughly 6% of the world’s sugar trade, contributing to supply disruptions.
Reports indicate that India’s sugar production for the 2025/26 season is projected to increase by 12% year-on-year to 29.3 million metric tons (MMT), despite a reduction in estimates for sugar used for ethanol from 5 MMT to 3.4 MMT. The U.S. Department of Agriculture predicts global sugar production for 2025/26 will rise by 4.6% to a record 189.318 MMT, with Brazilian output expected to climb by 2.3% to 44.7 MMT, bolstered by favorable conditions.
