**Sugar Prices Rise Amid Supply Concerns**
On Tuesday, May NY world sugar #11 (SBK26) closed at $14.10, up 2.02%, while Aug London ICE white sugar #5 (SWQ26) rose 1.36% to $433.40. This increase comes as gasoline prices climbed to a 3.75-year high, prompting Brazil’s sugar mills to increase ethanol production at the expense of sugar output. The initial report from Conab indicates that Brazil’s 2026/27 sugar production is projected to decline by 0.5% to 43.95 million metric tons (MT), while ethanol production is expected to rise by 7.2% year-on-year to 29.26 billion liters.
Additionally, the USDA has forecast Brazil’s sugar production for 2025/26 at 44.196 MT, reflecting a slight year-on-year increase. However, recent industry reports have suggested a tightening sugar market, with Covrig Analytics estimating the global sugar surplus for 2026/27 at 800,000 MT, down from 1.4 million MT, further supporting sugar prices amidst ongoing supply disruptions related to geopolitical tensions.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
