**Sugar Market Update – December 16, 2023**
On December 16, sugar prices saw a recovery with March NY world sugar #11 up 1.35% to $0.15 per pound, and March London ICE white sugar #5 rising 0.56% to $426.30 per metric ton. This increase follows a drop earlier in the week due to a strong dollar, which generally impacts commodity prices.
Brazil’s sugar production is projected to decline by 3.91% to 41.8 million metric tons in 2026/27, according to consulting firm Safras & Mercado, which is expected to result in an 11% reduction in exports to 30 million metric tons. In contrast, the India Sugar Mill Association (ISMA) reported an increase in India’s sugar production for 2025/26, raising its forecast from 30 million to 31 million metric tons, reflecting an 18.8% year-over-year increase.
The International Sugar Organization forecasts a surplus of 1.625 million metric tons for 2025/26, driven by increased production from India, Thailand, and Pakistan, while global sugar output is expected to rise by 3.2% to 181.8 million metric tons. This comes amid reports of record sugar outputs anticipated from Brazil and Thailand, which could further influence market dynamics.
