**Sugar Prices Rise Amid Market Influences**
As of today, May NY world sugar #11 (SBK26) increased by 0.12 (+0.77%), while May London ICE white sugar #5 (SWK26) rose by 1.50 (+0.33%). The uptick follows a recovery from 1.5-week lows, driven by short covering in sugar futures and a surge in the Brazilian real, which is now at a 1.5-week high against the dollar, discouraging export sales from Brazil’s sugar producers.
Brazil’s sugar production has increased, with Unica reporting a year-over-year rise of 0.7% for the 2025-26 season, totaling 40.25 million metric tons (MMT). However, support for sugar prices is also coming from supply disruptions due to the closure of the Strait of Hormuz, impacting approximately 6% of global sugar trade. Analysts predict a global sugar surplus of 3.4 MMT in the 2026/27 crop year, driven by increased output in countries like India, Thailand, and Brazil, where production is expected to reach a record 44.7 MMT.
