**Sugar Prices Surge Amid Supply Concerns**
On Wednesday, October NY world sugar #11 closed at $15.25, up 0.11 (+0.73%), while October London ICE white sugar #5 increased to $475.30, up 4.20 (+0.89%). This rise follows reports of tighter global sugar supplies, with Covrig Analytics forecasting a global sugar deficit of 300,000 MT for the 2026/27 season, a significant downgrade from a previously expected surplus of 100,000 MT. Green Pool Commodity Specialists also raised its deficit prediction to 3.3 MMT from 1.76 MMT.
Concerns regarding India’s sugar crop, amid expectations of below-normal monsoon rains, further support these price increases. The Indian Meteorological Department has indicated that cumulative rainfall this year has been 11% below normal as of August 5, potentially marking the weakest monsoon in 11 years. In Brazil, reduced sugar production is anticipated as millers shift more resources towards ethanol production, contributing to the tightening supply outlook for the coming years.
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