Global sugar futures climbed Monday as short covering lifted prices from last week’s multi-year lows. March New York sugar closed up 1.52% and December London sugar up 1.83%, supported by a stronger Brazilian real that reduced export incentives. The rebound follows steep declines driven by record production forecasts: Datagro projects Brazil’s Center-South 2026/27 output to rise 3.9% y/y to 44 MMT, while BMI and Covrig Analytics foresee global surpluses of 10.5 MMT and 4.1 MMT, respectively.
India’s outlook also pressures prices, with 2025/26 production expected up 19–25% to around 35 MMT amid strong monsoon rains, and limited ethanol diversion likely prompting higher exports. Thailand’s crop is set to rise 5% to 10.5 MMT. Although the International Sugar Organization still sees a small global deficit (-231 K MT) for 2025/26, the USDA projects record world output of 189 MMT and rising stocks, highlighting abundant supply. Traders see further volatility ahead as markets weigh regional surpluses against short-term technical recovery.
Link:
https://www.nasdaq.com/articles/sugar-prices-continue-higher-short-covering-0