March NY world sugar #11 (SBH26) on Thursday closed down -0.05 (-0.33%), and March London ICE white sugar #5 (SWH26) closed down -1.00 (-0.23%).
Sugar costs completed decrease on Thursday, consolidating this week’s losses. On Monday, sugar costs fell sharply to 1.5-week lows amid India’s ramped-up sugar manufacturing. The India Sugar Mill Affiliation (ISMA) reported Monday that Indian sugar manufacturing from Oct-Nov jumped +43% y/y to 4.11 MMT. The ISMA additionally reported that 428 sugar mills in India have been crushing cane as of November 30, up from 376 a yr in the past.
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Power in crude oil on Thursday restricted losses in sugar after WTI crude (CLF26) rose to a 2-week excessive, which helps ethanol costs and will immediate international sugar mills to divert extra cane crushing towards ethanol manufacturing moderately than sugar, thereby curbing sugar provides.
The outlook for report sugar output in Brazil is bearish for costs. Conab, Brazil’s crop forecasting company, on November 4 raised its Brazil 2025/26 sugar manufacturing estimate to 45 MMT from a earlier forecast of 44.5 MMT. On Monday, Unica reported that Brazil’s Middle-South sugar output within the first half of November rose by +8.7% y/y to 983 MT. Additionally, cumulative 2025-26 Middle-South sugar output by way of mid-November rose by +2.1% y/y to 39.179 MMT.
Final Friday, sugar costs rallied to 6-week highs on concern about tighter international provides. Final Wednesday, StoneX reduce its Brazil 2026/27 Middle-South sugar manufacturing estimate to 41.5 MMT from a September estimate of 42.1 MMT.
Latest information that India’s meals ministry is contemplating boosting the worth of ethanol used for gasoline mixing is bullish for sugar, because it may encourage India’s sugar mills to divert extra cane crushing towards ethanol manufacturing moderately than sugar, thereby decreasing sugar provides.
Sugar costs have assist from November 14, when India’s meals ministry mentioned it could permit mills to export 1.5 MMT of sugar within the 2025/26 season, under earlier estimates of two MMT. India launched a quota system for sugar exports in 2022/23 after late rain diminished manufacturing and restricted home provides.
On the bearish facet for sugar, the Worldwide Sugar Group (ISO) on November 17 forecast a 1.625 million MT sugar surplus in 2025-26, following a 2.916 million MT deficit in 2024-25. ISO mentioned the excess is being pushed by elevated sugar manufacturing in India, Thailand, and Pakistan. In August, ISO had beforehand forecast a 231,000 MT deficit for the 2025-26 advertising and marketing yr. ISO is forecasting a +3.2% y/y rise in international sugar manufacturing to 181.8 million MT in 2025-26.
The outlook for strong international sugar provides has hammered sugar costs since early October. On November 13, London sugar posted a 4.75-year nearest-futures low (SWZ25), and on November 6, NY sugar costs slumped to a 5-year nearest-futures low (SBH26), primarily resulting from larger sugar output in Brazil and discuss of a worldwide sugar surplus. Sugar dealer Czarnikow on November 5 boosted its international 2025/26 sugar surplus estimate to eight.7 MMT, up +1.2 MMT from a September estimate of seven.5 MMT.
Indicators of a bigger sugar crop in India, the world’s second-largest producer, are undercutting costs after the India Sugar Mill Affiliation (ISMA) on November 11 raised its 2025/26 India sugar manufacturing estimate to 31 MMT from an earlier forecast of 30 MMT, up +18.8% y/y. The ISMA additionally reduce its estimate for sugar used for ethanol manufacturing in India to three.4 MMT from a July forecast of 5 MMT, which can permit India to spice up its sugar exports.
The outlook for larger sugar exports from India is adverse for sugar costs, as considerable monsoon rains might produce a bumper sugar crop. On September 30, India’s Meteorological Division reported that cumulative monsoon rainfall as of that date was 937.2 mm, 8% above regular, marking the strongest monsoon in 5 years. On June 2, India’s Nationwide Federation of Cooperative Sugar Factories projected that India’s 2025/26 sugar manufacturing would climb +19% y/y to 34.9 MMT, citing bigger planted cane acreage. That will observe a -17.5% y/y decline in India’s sugar manufacturing in 2024/25 to a 5-year low of 26.1 MMT, in response to the Indian Sugar Mills Affiliation (ISMA).
The outlook for larger sugar manufacturing in Thailand is bearish for costs. The Thai Sugar Millers Corp on October 1 projected that Thailand’s 2025/26 sugar crop will enhance by +5% y/y to 10.5 MMT. On Might 2, Thailand’s Workplace of the Cane and Sugar Board reported that Thailand’s 2024/25 sugar manufacturing rose +14% y/y to 10.00 MMT. Thailand is the world’s third-largest sugar producer and the second-largest exporter.
The USDA, in its bi-annual report launched Might 22, projected that international 2025/26 sugar manufacturing would climb +4.7% y/y to a report 189.318 MMT and that international 2025/26 human sugar consumption would enhance +1.4% y/y to a report 177.921 MMT. The USDA additionally forecast that 2025/26 international sugar ending shares would climb by +7.5% y/y to 41.188 MMT. The USDA’s Overseas Agricultural Service (FAS) predicted that Brazil’s 2025/26 sugar manufacturing would rise by 2.3% y/y to a report 44.7 MMT. FAS additionally predicted that India’s 2025/26 sugar manufacturing would enhance by 25% y/y to 35.3 MMT, pushed by favorable monsoon rains and elevated sugar acreage. As well as, FAS predicted that Thailand’s 2025/26 sugar manufacturing will enhance by +2% y/y to 10.3 MMT.
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