**Sugar Prices Decline After U.S. Projections of Indian Surplus**
On Thursday, May NY world sugar #11 (SBK26) fell by $0.10 (-0.68%), and August London ICE white sugar #5 (SWQ26) dropped by $5.90 (-1.33%). The decline followed the USDA’s announcement predicting a 2026/27 sugar surplus in India of 2.5 million metric tons, marking the country’s first surplus in two years. India, the second-largest sugar producer globally, is expected to impact supply dynamics.
Brazil’s sugar production is also anticipated to decrease, with reports indicating a 11.9% year-over-year decline to 647 million tons in the first half of April, primarily as mills shift to ethanol production. The USDA further projected Brazil’s sugar output for 2026/27 at 42.5 million metric tons, down 3% from the previous year. In contrast, Indian sugar production for 2025/26 is expected to rise by 12% year-over-year to 29.3 million metric tons. Concerns about supply disruptions and recent price adjustments have added complexity to sugar market trends.
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