Sugar Prices Remain Weak on Abundant Global Supplies

Core Insights - Global sugar prices are experiencing mixed trends, with New York sugar prices rising due to a weak dollar, while London sugar prices are declining [1] Group 1: Global Sugar Production - Brazil's cumulative sugar output for the 2025-26 season has increased by 0.9% year-on-year to 40.222 million metric tons (MMT) [2] - India's sugar output from October 1 to January 15 for the 2025-26 season has surged by 22% year-on-year to 15.9 MMT, with the overall production estimate raised to 31 MMT, an increase of 18.8% year-on-year [3] - Brazil's sugar production estimate for 2025-26 has been revised upwards to 45 MMT from 44.5 MMT [6] Group 2: Sugar Exports and Domestic Supply - India's government may allow additional sugar exports to alleviate a domestic supply glut, with a quota of 1.5 MMT for the 2025-26 season [4] - The reduction in sugar used for ethanol production in India may enable an increase in sugar exports [3] Group 3: Market Outlook - The global sugar surplus for 2025-26 has been increased to 4.7 MMT, indicating downward pressure on prices [5] - Future projections suggest a decrease in Brazil's sugar production by 3.91% to 41.8 MMT for the 2026-27 season, which may support prices [7]