Sugar Prices Rebound on Strength in the Brazilian Real and Crude Oil

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 Rebound on Strength in the Brazilian Real and Crude Oil March 31, 2026 — 01:58 pm EDT Written by Rich Asplund for Barchart-> May NY world sugar #11 (SBK26) today is up +0.12 (+0.77%), and May London ICE white sugar #5 (SWK26) is up +1.50 (+0.33%).Sugar prices recovered from 1.5-week lows today and moved higher as short covering emerged in sugar futures after the Brazilian real (^USDBRL) rallied to a 1.5-week high against the dollar. The stronger real discourages export sales from Brazil's sugar producers. Today's rally in WTI crude oil (CLK26) to a 3-week high was also supportive of sugar prices. Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. Sugar prices were initially under pressure today on negative carryover from last Friday amid higher sugar production in Brazil, as sugar mills divert more cane crushing toward sugar output rather than ethanol. Unica reported last Friday that cumulative 2025-26 Center-South sugar output (October through mid-March) is up +0.7% y/y to 40.25 MMT, with sugar mills boosting the amount of cane crushed for sugar to 50.61% from 48.08% last year.On Monday, NY sugar rallied to a 5.5-month high, and London sugar climbed to a 6-month high, driven by strength in crude oil prices (CLK26). Crude oil surged to a 3.75-year high earlier this month, boosting ethanol prices and potentially encouraging the world's sugar mills to increase ethanol production and curb sugar output. Sugar prices also have some support amid supply disruptions from the closure of the Strait of Hormuz. According to Covrig Analytics, the closure of the strait has curbed approximately 6% of the world's sugar trade, constraining refined sugar output.Earlier this month, sugar prices plunged to 5.5-year nearest-futures lows on concern that a global sugar surplus will persist. On February 11, analysts from sugar trader Czarnikow said they expect a global sugar surplus of 3.4 MMT in the 2026/27 crop year, following an 8.3 MMT surplus in 2025/26. Also, Green Pool Commodity Specialists said on January 29 that they expect a 2.74 MMT global sugar surplus for 2025/26 and a 156,000 MT surplus for 2026/27. Meanwhile, StoneX said February 13 that it expects a global sugar surplus of 2.9 MMT in 2025/26.The International Sugar Organization (ISO) on February 27 forecasted a +1.22 MMT (million metric ton) sugar surplus in 2025-26, following a -3.46 MMT deficit in 2024-25. ISO said the surplus is being driven by increased sugar production in India, Thailand, and Pakistan. ISO is forecasting a +3.0% y/y rise in global sugar production to 181.3 million MMT in 2025-26.

The Indian Sugar and Bio-energy Manufacturers Association (ISMA) reported last Tuesday that India's 2025-26 sugar output from Oct 1-Mar 15 was up +10.5% y/y to 26.2 MMT. On March 11, the ISMA projected India's 2025/26 sugar production at 29.3 MMT, up 12% y/y, below an earlier projection of 30.95 MMT. The ISMA also cut its estimate for sugar used for ethanol production in India to 3.4 MMT from a July forecast of 5 MMT, which may allow India to boost its sugar exports. India is the world's second-largest sugar producer. Sugar prices are being undercut amid prospects of higher Indian sugar exports. On February 13, India's government approved an additional 500,000 MT of sugar for export for the 2025/26 season, on top of the 1.5 MMT approved in November. India introduced a quota system for sugar exports in 2022/23 after late rain reduced production and limited domestic supplies.The USDA, in its bi-annual report released on December 16, projected that global 2025/26 sugar production would climb +4.6% y/y to a record 189.318 MMT and that global 2025/26 human sugar consumption would increase +1.4% y/y to a record 177.921 MMT. The USDA also forecast that 2025/26 global sugar ending stocks would fall by -2.9% y/y to 41.188 MMT. The USDA's Foreign Agricultural Service (FAS) predicted that Brazil's 2025/26 sugar production would rise by 2.3% y/y to a record 44.7 MMT. FAS also predicted that India's 2025/26 sugar production would increase by 25% y/y to 35.25 MMT, driven by favorable monsoon rains and increased sugar acreage. In addition, FAS predicted that Thailand's 2025/26 sugar production will increase by +2% y/y to 10.25 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 After a Record Bull Run, Is the Cattle Market Headed for Collapse? 1 Winning Trade Idea to Play Fertilizer Shortages and Rising Prices What Should We Expect From USDA Tuesday?

Mark Your Calendars: Grain Traders Brace for Major USDA Data Points Tuesday 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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