Global Sugar Market Rallies Amid Production-Surplus Concerns
24-Feb-2026 10:41 AM
Global Sugar Market Rallies Amid Production-Surplus Concerns
★ International sugar prices have moved higher, with New York futures hitting a 2.5-week high and London sugar reaching a 1.5-week high. Strength in the Brazilian real, which climbed to a 1.75-year high, has made exports costlier and provided support to prices.
★ In Brazil’s Center-South region, sugar production for the 2025-26 season so far stands at 402.4 lakh tonnes, up 0.9% year-on-year. However, output in the second half of January fell 36% to 0.05 lakh tonnes.
★ Globally, sugar production for 2025-26 is estimated at 1,893.18 lakh tonnes, while consumption is projected at 1,779.21 lakh tonnes. Various agencies have forecast a surplus ranging between 16 and 87 lakh tonnes, raising concerns of downward pressure on prices in the longer term.
★ In India, sugar production between October 1 and January 15 rose 22% to 159 lakh tonnes. The government has also approved an additional 5 lakh tonnes of sugar exports for the 2025-26 season
★ Despite the likelihood of a global surplus, currency movements and short-covering by funds are currently lending support to sugar prices.