Sugar Prices Boosted by Fund Short Covering Ahead of Holiday Weekend

Group 1: Sugar Price Movements - Sugar prices increased sharply on Friday, with March NY world sugar 11 closing up by 0.39 (+2.68%) and March London ICE white sugar 5 closing up by 10.20 (+2.44%) due to fund short covering ahead of a three-day weekend in the US [1] - On Thursday, NY sugar reached a one-month low, while London sugar fell to a two-month low, influenced by strong sugar production in India [2] Group 2: Production Reports - India's sugar production for the 2025-26 season is projected to rise to 15.9 million metric tons (MMT), reflecting a 21% year-on-year increase [2] - Brazil's cumulative sugar output for the 2025-26 season increased by 0.9% year-on-year to 40.158 MMT, with the ratio of cane crushed for sugar rising to 50.91% in 2025/26 from 48.19% in 2024/25 [3] Group 3: Market Outlook - The global sugar surplus outlook is negatively impacting prices, with Covrig Analytics raising its 2025/26 global sugar surplus estimate to 4.7 MMT from 4.1 MMT [5] - Future sugar supplies from Brazil are expected to decrease, with a projected decline of 3.91% in sugar production for 2026/27 to 41.8 MMT [6] - India's sugar production estimate for 2025/26 was raised to 31 MMT, an 18.8% year-on-year increase, which may enhance India's sugar export potential [7]