**Sugar Prices Decline Amid Supply Concerns**
On Tuesday, July NY world sugar #11 fell by 0.16 cents (-1.09%) to close at a 2.5-week low, while August London ICE white sugar #5 dropped by 5.50 (-1.24%). This decline in sugar prices was influenced by a significant drop in crude oil prices, which reached a 2.5-week low, potentially leading global sugar mills to shift more cane crushing from ethanol to sugar production.
The International Sugar Organization (ISO) has forecasted a record global sugar production of 182 million metric tons (MMT) for the 2025/26 season, reflecting an increase of 3.5% year-over-year and a surplus of 2.2 MMT. However, concerns regarding an El Niño weather pattern, which may reduce rainfall in key sugar-producing countries, could tighten supply further, especially considering India’s ongoing four-month ban on sugar exports, which is set to last until September 30.
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