On October 3, 2023, New York world sugar #11 closed down by $0.08 (-0.53%) and August London ICE white sugar #5 dropped by $12.50 (-2.56%). This decline followed a recent rally that drove sugar prices to an 8-week high in New York and a 10-month high in London, prompting technical selling and long liquidation.
Key factors contributing to the price fluctuations include concerns over India’s weak monsoon season, which is 20% below normal as of July 6, and the potential impact of a developing El Niño weather pattern that could further affect sugar production in major regions like Brazil and India. The USDA projects a decline in Brazil’s sugar production to 42.5 million metric tons for 2026/27, with ethanol production rising significantly, as millers shift focus from sugar to ethanol.
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