**Sugar Prices Surge Amid Supply Concerns**
On Friday, May NY world sugar #11 (SBK26) closed at $13.90, up 2.43%, marking a one-week high, while August London ICE white sugar #5 (SWQ26) settled at $433.60, up 1.82%. This rise is attributed to a strengthened Brazilian real, which reached a two-year high against the dollar, discouraging export sales from Brazilian producers.
The USDA projects Brazil’s 2026/27 sugar production at 42.5 million metric tons (MMT), a 3% decline year-over-year, as mills prioritize ethanol production. Covrig Analytics has revised its global sugar surplus estimate for 2026/27 down to 800,000 metric tons, while Czarnikow cut its estimate significantly from 3.4 MMT to 1.1 MMT. Concerns over supply disruptions from the ongoing closure of the Strait of Hormuz have also impacted the market, accounting for roughly 6% of global sugar trade.
