Limited Fluctuations in Global Sugar Futures Prices

31-Dec-2025 12:55 PM

New York. Global sugar futures prices are experiencing limited fluctuations. Prices sometimes rise due to certain factors, while at other times they fall due to other reasons.

A leading analytical firm, in its report released last week, projected that sugar production in the Latin American country of Brazil would decrease by 3.91 percent from 43.5 million tons in the 2025-26 season to 41.8 million tons in the 2026-27 season.

Similarly, it projected that sugar exports from Brazil would also decline by 11 percent to 30 million tons. It is noteworthy that Brazil is the world's leading producer and exporter of sugar.

After the release of the analytical firm's report, global sugar futures prices saw a significant increase, but due to weak trading, prices began to soften again.

Earlier, when there were discussions about increasing India's sugar export quota, prices were under considerable pressure. However, after the analytical firm's report, this pressure not only eased but sugar futures prices also surged to their highest level in the last two and a quarter months.

The Indian government had already permitted the export of 1.5 million tons of sugar in November. In December, the Central Food Secretary indicated that if a large surplus of sugar was anticipated in the domestic market due to high production, then the possibility of releasing an additional export quota could be considered.

The top industry body, ISMA, in its report released on November 11, projected that domestic sugar production would increase by approximately 19 percent to 31 million tons in the 2025-26 season, which is significantly higher than the demand and consumption.

This has put pressure on sugar prices, and the ex-factory selling price has fallen considerably below the cost of production.