**Sugar Prices Decline Amid Stronger Dollar and Indian Output Boost**
On Thursday, October NY world sugar #11 (SBV26) closed down by $0.05 (-0.34%), while October London ICE white sugar #5 (SWV26) decreased by $4.90 (-1.05%). The drop in sugar prices is attributed to a stronger U.S. dollar and an anticipated increase in sugar production in India due to improved monsoon rains. As of July 22, India’s cumulative monsoon rainfall was reported at 19% below normal, a significant recovery from 42% below normal on June 30.
Concerns over the impact of a potential El Niño weather pattern pose challenges for global sugar production, with Brazil, India, and Thailand—the top three sugar-producing regions—likely to be affected. Recent forecasts indicate that the 2026/27 global sugar production could decline by 1.15% year-over-year to 180 million metric tons, leading to a projected global deficit of 262,000 metric tons. Meanwhile, India’s sugar production for the 2026/27 season is expected to rise to 33.6 million metric tons, facilitated by favorable rainfall and an increase in sugar acreages.
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