Sugar Prices Slip on Prospects of Higher Indian Sugar Exports

Core Insights - Sugar prices have experienced a decline, influenced by India's request to export 2 million metric tons (MMT) of sugar for the 2025/26 season, which has created a negative sentiment in the market [1] - The Brazilian real has strengthened, reaching a 15-month high against the dollar, which has limited export sales from Brazil's sugar producers [2] - Brazil's sugar production outlook is positive, with a reported 16% year-on-year increase in sugar output in early August, although cumulative production for the 2025-26 season is down 4.7% year-on-year [3][6] Production Trends - Brazil's sugar mills are prioritizing sugar production over ethanol, leading to an increase in sugarcane crushed for sugar [4] - The International Sugar Organization (ISO) has forecasted a global sugar deficit for the 2025/26 season, marking the sixth consecutive year of deficits, with a projected deficit of 231,000 MT [5] - Brazil's government crop forecasting agency, Conab, has reduced its sugar production estimate for 2025/26 by 3.1% due to adverse weather conditions affecting sugarcane yields [6]