Prospects of Higher Indian Sugar Exports Weigh on Sugar Prices

Group 1 - Sugar prices experienced moderate losses, with October NY world sugar closing down 0.11 (-0.69%) and October London ICE white sugar down 1.70 (-0.35%) [1] - The Indian Sugar and Bio-energy Manufacturers Association has requested permission to export 2 million metric tons (MMT) of sugar for the 2025/26 season, which may impact global sugar supply dynamics [1] - Brazil's sugar production outlook is positive, with a reported 16% year-on-year increase in sugar output in the first half of August, reaching 3.615 million metric tons (MT) [3] Group 2 - Brazil's sugar mills are prioritizing sugar production over ethanol, leading to an increase in sugarcane crushed for sugar, driven by drier cane crops [4] - The International Sugar Organization (ISO) forecasts a global sugar deficit of 231,000 MT for the 2025/26 season, marking the sixth consecutive year of deficits, although this is an improvement from a 4.88 million metric ton shortfall in 2024/25 [5] - Brazil's government crop forecasting agency, Conab, has reduced its 2025/26 sugar production estimate by 3.1% to 44.5 MMT, citing lower sugarcane yields due to drought and excessive heat [6]