On October 10, sugar prices declined sharply, with New York world sugar #11 dropping by 3.28% to $17.44 and December London white sugar #5 falling by 3.03% to $509.70. This downturn follows a significant delivery of 499,350 metric tons against the October London sugar contract, marking a 91% year-over-year increase and highlighting weak physical sugar demand.
The International Sugar Organization (ISO) predicts a global sugar deficit of 200,000 metric tons for the 2026/27 season, reversing earlier surplus forecasts. This comes as the Thai Sugar Millers Corp anticipates a 17% decline in sugar production to 10 million metric tons, and the USDA forecasts a 6.5% drop in global sugar production for the same period.
India, the world’s second-largest sugar producer, reported a cumulative monsoon rainfall 15% below normal as of September 16, contributing to concerns over reduced sugar output. Additionally, Brazil’s sugar production fell by 26.3% year-over-year in June 2023, further straining the global market.
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