Sugar Prices Push Higher on Strength in the Brazilian Real

Group 1 - Sugar prices are experiencing upward movement due to the strength of the Brazilian real, which has led to short covering in sugar futures [1] - The Indian Sugar Mill Association reported a significant increase in sugar production for 2025-26, with a year-on-year rise of 25% to 11.90 million metric tons (MMT) [2] - The Indian government is considering allowing additional sugar exports to alleviate domestic supply issues, with a quota of 1.5 MMT set for the 2025/26 season [3] Group 2 - Brazil's sugar production is projected to decline by 3.91% to 41.8 MMT in 2026/27, which may impact future sugar supplies [4] - Brazil's crop forecasting agency, Conab, has raised its sugar production estimate for 2025/26 to 45 MMT, indicating a bearish outlook for prices [5] - The cumulative sugar output in Brazil's Center-South region has increased by 1.1% year-on-year to 39.904 MMT as of November 2025-26 [5]