**Sugar Prices Decline Amid Stronger Dollar and Improved Indian Output Forecasts**
On October 26, 2023, sugar prices fell, with NY world sugar #11 down by $0.04 (-0.27%) and London ICE white sugar #5 down by $5.00 (-1.08%). This decrease is partly attributed to a stronger U.S. dollar and expectations of improved sugar production in India as monsoon rainfall showed significant improvement, moving from 42% below normal to 19% below normal as of July 22. The Indian Meteorological Department noted this positive trend.
Additionally, concerns regarding the global impact of an El Niño weather pattern are emerging, as it could disrupt sugar production in major regions, including Brazil and Thailand. The USDA projects that global sugar production will drop to 180 million metric tons in 2026/27, a decrease of 1.15% year-over-year, while predicting a global deficit of 262,000 metric tons. In contrast, India’s sugar output is expected to rise by 12% to 33.6 million metric tons in the same year, benefiting from favorable monsoon conditions.
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