Sugar Prices Slide on Crude Oil and Brazilian Real Weakness

Sugar Market Overview - Sugar prices are declining, with NY sugar reaching a 2.5-week low and London ICE white sugar also falling [2][1] - The decline in sugar prices is influenced by a drop in crude oil prices and a weaker Brazilian Real, which encourages Brazilian sugar exports [2][4] Supply Dynamics - Brazil's sugar output has increased, with a reported 15.7% year-on-year rise in the first half of September, leading to higher sugar production [4][5] - The percentage of sugarcane crushed for sugar in Brazil has also risen, indicating a shift towards sugar production over ethanol [4] - A projected global sugar surplus of 4.1 million metric tons for the 2025/26 season adds to the bearish sentiment in the market [3] India’s Production Outlook - India's sugar production is expected to rebound significantly, with a projected 19% year-on-year increase to 34.9 million metric tons for the 2025/26 season due to favorable monsoon conditions [5] - The cumulative monsoon rainfall in India has been reported at 937.2 mm, 8% above normal, contributing to expectations of a bumper sugar crop [5]