**Global Sugar Prices Decline Amid Surpluses and Production Increases**
Sugar prices are retreating, with March NY world sugar #11 (SBH26) down 1.46% and March London ICE white sugar #5 (SWH26) down 1.78%, marking a 5-year low for London sugar futures. The decline is largely attributed to ongoing global sugar surpluses, with analysts from Czarnikow predicting a surplus of 3.4 million metric tons (MMT) in the 2026/27 crop year, following an 8.3 MMT surplus in 2025/26.
Brazil’s sugar output for the 2025-26 season has increased by 0.9% year-on-year to 40.236 MMT, according to Unica. Additionally, India, the world’s second-largest sugar producer, reported a 22% year-on-year increase in its sugar output, totaling 15.9 MMT from October 1 to January 15. The International Sugar Organization forecasts a 1.625 MMT sugar surplus for 2025-26, driven by increased production in India, Thailand, and Pakistan.
