Sugar Prices Drop Amid Rising Temperatures in Brazil

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On October 3, 2023, October NY world sugar #11 (SBV25) closed down 0.15 cents (-0.92%) at a pressure point from the removal of frost risk in Brazil, while August London ICE white sugar #5 (SWQ25) fell 0.90 cents (-0.19%).

Recent data reveals that India’s sugar production for the 2025/26 season is projected to rise by 19% year-on-year to 35 million metric tons (MMT), supported by above-normal rainfall and an expanded cane acreage. The USDA forecasts a global sugar production increase of 4.7% year-over-year to a record 189.318 MMT for the same period, with a substantial 7.5 MMT global sugar surplus anticipated, the largest in eight years.

In Brazil, cumulative sugar output is down 14.6% year-on-year to 9.404 MMT as of mid-June 2023, amidst concerns of drought and heat affecting yields; however, the International Sugar Organization is expecting a global sugar deficit of 5.47 MMT for 2024/25.

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