March NY world sugar #11 (SBH26) today is down -0.34 (-2.30%), and March London ICE white sugar #5 (SWH26) is down -6.80 (-1.61%). Sugar prices tumbled to 1-week lows today on the prospects of higher sugar exports from India after the country's food secretary said the government may permit additional sugar exports to reduce a domestic supply glut.  Last month, India's food ministry said it would allow mills to export 1.5 MMT of sugar in the 2025/26 season.  India introduced a quota system for sugar export ...

Group 1: Sugar Price Trends - Sugar prices settled lower due to concerns that India may increase its sugar exports beyond expectations, with potential exports rising to 4 million metric tons (MMT) instead of the previously anticipated 2 MMT [2] - NY sugar futures recently hit a 4.25-year low, while London sugar fell to a 3.5-week low, influenced by the outlook for higher sugar production in Brazil [5] - The Brazilian real's strength limited losses in sugar prices, as it reached a 15-month high against the dollar, discouraging export sales from Brazilian sugar producers [3] Group 2: Production and Export Dynamics - Brazil's sugar mills are prioritizing sugar production over ethanol, with a reported increase in sugarcane crushed for sugar from 49.15% to 55.00% year-on-year [5][6] - Brazil's Center-South sugar output in the first half of August rose by 16% year-on-year to 3,615 thousand metric tons (MT), although cumulative output for 2025-26 is down 4.7% year-on-year to 22.886 MMT [5] - The Indian Sugar and Bio-energy Manufacturers Association has requested permission to export 2 MMT of sugar in the 2025/26 season, highlighting India's position as the world's second-largest sugar producer [7] Group 3: Market Sentiment and Positioning - An excessive short position by funds in NY sugar could lead to gains in any short-covering rally, with net-short positions increasing by 32,849 to 182,608, the highest in nearly six years [4]