As of today, May NY world sugar #11 (SBK26) has risen by 4.32% to $14.71 per pound, while August London ICE white sugar #5 (SWQ26) is up 2.75% to $444.70 per metric ton. This marks a three-week high for NY sugar and a four-week high for London sugar, driven by a surge in gasoline prices reaching a 3.75-year high.
Recent data from Brazil’s government forecasting agency, Conab, indicates that sugar output for the 2026/27 season is expected to decrease by 0.5% to 43.952 million metric tons, while ethanol production is forecasted to increase by 7.2% year-on-year to 29.259 billion liters. This shift in Brazil’s sugar mills from sugar production to ethanol is contributing to tighter global sugar supplies.
Furthermore, Covrig Analytics revised its global sugar surplus estimate for 2026/27 down to 800,000 metric tons from 1.4 million metric tons previously. This reduction, alongside other global forecasts indicating increased production in major sugar-producing countries, supports the upward trend in sugar prices amid ongoing supply concerns due to geopolitical issues affecting trade routes.
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