**Sugar Prices Surge Amid Supply Disruptions**
As of today, May NY world sugar #11 is up 1.93%, reaching a 5-month high, while May London ICE white sugar #5 has increased by 3.05%, marking a 5.5-month high. This rise is bolstered by a 4% increase in crude oil prices, which is expected to prompt sugar mills to shift from sugar production to ethanol.
The closure of the Strait of Hormuz is constraining about 6% of the world’s sugar trade, further supporting sugar prices. Earlier this month, sugar experienced a plunge to 5.5-year lows due to concerns over a global sugar surplus, with projections indicating a 3.4 million metric ton surplus expected for the 2026/27 crop year.
Additionally, the Indian Sugar and Bio-energy Manufacturers Association reports India’s sugar output from October to March 15 increased by 10.5% year-on-year to 26.2 million metric tons. The USDA forecasts record global sugar production for 2025/26, predicting an increase of 4.6% year-on-year to 189.318 million metric tons.
