Sugar Prices Fall on the Outlook for Ample Global Supplies

AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Sugar Prices Fall on the Outlook for Ample Global Supplies May 18, 2025 — 08:27 pm EDT Written by Rich Asplund for Barchart-> July NY world sugar #11 (SBN25) Friday closed down -0.15 (-0.85%), and August London ICE white sugar #5 (SWQ25) closed down -2.90 (-0.59%).Sugar prices on Friday tumbled to 1-week lows on expectations for a global sugar surplus. On Wednesday, consultant Datagro projected a 2025/26 global sugar surplus of +1.53 MMT, recovering sharply from a 2024/25 global sugar deficit of -4.67 MMT. Meanwhile, StoneX projects a 2025/26 global sugar surplus of +3.74 MMT. Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. Signs of larger global sugar output are negative for prices. Last Tuesday, the USDA's Foreign Agricultural Service (FAS) predicted that India's 2025/26 sugar production would rise +26% y/y to 35 MMT, citing favorable monsoon rains and increased sugar acreage. On April 23, the USDA's FAS predicted that Brazil's 2025/26 sugar production would climb +2.3% y/y to 44.7 MMT from 43.7 MMT in the previous season. On April 29, Conab forecasted Brazil's 2025/26 Brazil sugar production would climb +4.0% y/y to 45.875 MMT. Sugar prices are also being undercut by the outlook for abundant rain in India, which could lead to a bumper sugar crop. On April 15, India's Ministry of Earth Sciences projected an above-normal monsoon this year, with total rainfall forecast to be 105% of the long-term average. India's monsoon season runs from June through September. In a bearish factor, the Indian government said on January 20 that it would allow its sugar mills to export 1 MMT of sugar this season, easing the restrictions placed on sugar exports in 2023. India has restricted sugar exports since October 2023 to maintain adequate domestic supplies. India allowed mills to export only 6.1 MMT of sugar during the 2022/23 season to September 30 after allowing exports of a record 11.1 MMT in the previous season. However, the ISMA projects that India's 2024/25 sugar production will fall -17.5% y/y to a 5-year low of 26.2 MMT. Also, the ISMA today reported that India's sugar production from Oct 1-May 15 was 25.74 MMT, down -17% from the same period last year. In addition, Indian Food Secretary Chopra said on May 1 that India's 2024/25 sugar exports may only total 800,000 MT, below earlier expectations of 1 MMT.The outlook for higher sugar production in Thailand is bearish for sugar prices. On May 2, Thailand's Office of the Cane and Sugar Board reported that Thailand's 2024/25 sugar production rose +14% y/y to 10.00 MMT. Thailand is the world's third-largest sugar producer and the second-largest sugar exporter.Signs of lower global sugar production are supportive of prices. On Tuesday, Unica reported that Brazil 2025/26 Center-South sugar production for April fell -38.6% y/y to 1.58 MMT. Unica reported on April 14 that the cumulative 2024/25 Brazil Center-South sugar output through March fell by 5.3% y/y to 40.169 MMT. On March 12, the Indian Sugar and Bio-energy Manufacturers Association cut its 2024/25 India sugar production forecast to 26.4 MMT from a January forecast of 27.27 MMT, citing lower cane yields. Meanwhile, the International Sugar Organization (ISO) on Thursday raised its 2024/25 global sugar deficit forecast to a 9-year high of -5.47 MMT from a February forecast of -4.88 MMT, showing a tightening market from the 2023/24 global sugar surplus of 1.31 MMT. The ISO also cut its 2024/25 global sugar production forecast to 174.8 MMT from a February forecast of 175.5 MMT. Drought and excessive heat last year caused fires in Brazil that damaged sugar crops in Brazil's top sugar-producing state of Sao Paulo.

Green Pool Commodity Specialists noted that as much as 5 MMT of sugar cane may have been lost due to the fires. Last month, Conab, Brazil's government crop forecasting agency, projected 2024/25 Brazil sugar production to fall -3.4% y/y to 44.118 MMT, citing lower sugarcane yields due to drought and excessive heat. The USDA, in its bi-annual report released November 21, projected that global 2024/25 sugar production would climb +1.5% y/y to a record 186.619 MMT and that global 2024/25 human sugar consumption would increase +1.2% y/y to a record 179.63 MMT. The USDA also forecasted that 2024/25 global sugar ending stocks would decline -6.1% y/y to 45.427 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart Will Sugar’s Price Consolidation End?

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Will Sugar Follow the Other Soft Commodities? The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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