On Tuesday, October NY world sugar #11 closed down by 0.50 cents (3.09%) at a new contract low, while August London ICE white sugar #5 fell by 10.20 cents (2.16%). This sharp decline in sugar prices is attributed to weak demand and expectations of larger global sugar supplies.
In a significant indicator of reduced demand, 45,112 metric tons (MT) of NY sugar were delivered to settle the July contract, marking the smallest delivery for a July contract in 11 years. Furthermore, projections from Czarnikow suggest a 7.5 million metric ton global sugar surplus for the 2025/26 season, the largest in 8 years, as major producers like India and Brazil anticipate increased production levels, potentially affecting market prices negatively.
