October NY world sugar #11 closed down 0.08 cents or 0.46% on Friday, while December London ICE white sugar #5 fell 7.30 cents or 1.43%. These declines stemmed from concerns over weak demand, highlighted by McDougall Global Views indicating a potential delivery of approximately 1.8 million metric tons (MMT) against the October NY sugar contract, surpassing the six-year average.
Last Tuesday, NY sugar reached a one-month low, and London sugar hit a one-and-a-half-month low, with the expiring October London sugar contract seeing 499,350 MT delivered, a 91% year-over-year increase, indicating further weakness in physical demand. Furthermore, StoneX reduced its global sugar deficit estimate for 2026/27 to 900,000 MT from 1.7 MMT, compounding negative sentiment in the market.
Forecasts predict a strained global sugar supply, particularly with India’s meteorological department noting a cumulative monsoon rainfall that is 15% below normal. This situation, alongside production cuts projected in Brazil and Thailand due to adverse weather patterns, is expected to maintain upward pressure on prices in the sugar market.
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