October NY world sugar #11 (SBV25) on Friday closed down -0.03 (-0.19%), and October London ICE white sugar #5 (SWV25) closed down -3.00 (-0.61%).
Sugar costs fell for a second session on Friday on damaging carryover from Thursday, when the Indian Sugar and Bio-energy Producers Affiliation mentioned it has requested permission to export 2 MMT of sugar within the 2025/26 season starting in October. India is the world’s second-largest sugar producer.
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Losses in sugar had been restricted on Friday after the Brazilian actual (^USDBRL) rallied to a 15-month excessive towards the greenback. The stronger actual discourages export gross sales from Brazil’s sugar producers.
On Monday, NY sugar tumbled to a 4.25-year nearest-futures low, and London sugar fell to a 2.5-week low as a result of outlook for larger sugar manufacturing in Brazil. On August 29, Unica reported that Brazil’s Middle-South sugar output within the first half of August rose by +16% y/y to three,615 MT. Additionally, the share of sugarcane crushed for sugar by Brazil’s sugar mills within the first half of August elevated to 55.00% from 49.15% the identical time final 12 months. Nonetheless, cumulative 2025-26 Middle-South sugar output by way of mid-August is down -4.7% y/y to 22.886 MMT.
Covrig Analytics just lately reported that Brazil’s sugar mills are prioritizing sugar manufacturing over ethanol, crushing extra cane for sugar. This development is predicted to proceed as harvesting peaks, pushed by drier cane crops that immediate mills to provide extra sugar.
Final Monday, London sugar rose to a 4-month excessive after the Worldwide Sugar Group (ISO) on August 29 forecast a world sugar deficit for the 2025/26 season, the sixth consecutive 12 months of sugar deficits. The ISO initiatives a world 2025/26 sugar deficit of -231,000 MT, bettering from a -4.88 MMT shortfall in 2024/25. The ISO additionally initiatives 2025/26 international sugar manufacturing will rise by +3.3% y/y to 180.6 MMT, and 2025/26 international sugar consumption will improve +0.3% y/y to 180.8 MMT.
On August 19, Conab, Brazil’s authorities crop forecasting company, reduce its Brazil 2025/26 manufacturing estimate by 3.1% to 44.5 MMT from a earlier estimate of 45.9 MMT. In July, Conab reported that 2024/25 Brazil sugar manufacturing fell by -3.4% y/y to 44.118 MMT, citing decrease sugarcane yields because of drought and extreme warmth.
Expectations for ample sugar provides are undercutting sugar costs. On June 30, commodities dealer Czarnikow projected a 7.5 MMT international sugar surplus for the 2025/26 season, the most important surplus in 8 years. On Might 22, the USDA, in its biannual report, projected that international 2025/26 sugar manufacturing would improve by +4.7% y/y to a report 189.318 MMT, with international sugar ending shares at 41.188 MMT, up 7.5% y/y.
The outlook for larger sugar exports from India is damaging for sugar costs, as ample monsoon rains might produce a bumper sugar crop. India’s Meteorological Division reported Wednesday that cumulative monsoon rain in India was 826.2 mm as of September 10, or 8% above regular.
The outlook for larger sugar manufacturing in India is bearish for costs. 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 might observe a -17.5% y/y decline in India’s sugar manufacturing in 2024/25 to a 5-year low of 26.2 MMT, in accordance with the Indian Sugar Mills Affiliation (ISMA).
The outlook for larger sugar manufacturing in Thailand is bearish for sugar costs. 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 of sugar.
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 improve +1.4% y/y to a report 177.921 MMT. The USDA additionally forecasted that 2025/26 international sugar ending shares would climb +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 +2.3% y/y to a report 44.7 MMT FAS predicted that India’s 2025/26 sugar manufacturing would rise +25% y/y to 35.3 MMT because of favorable monsoon rains and elevated sugar acreage. FAS predicted that Thailand’s 2025/26 sugar manufacturing will climb +2% y/y to 10.3 MMT.
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