News Capsule: Sugar Market Update
31-Dec-2025 10:39 AM
News Capsule: Sugar Market Update
★ Global sugar prices remain under pressure, with recent weakness driven by a stronger US dollar that pushed prices to one-week lows.
★ Brazil’s sugar production for the 2026–27 season is expected to decline to around 41.8 million tonnes, which could lend some support to prices in the longer term. However, in the near term, higher production outlooks in Brazil, India and Thailand for 2025–26 are weighing on the market.
★ In India, ISMA has raised its 2025–26 sugar production estimate to about 31 million tonnes. Lower diversion of sugar for ethanol may allow higher exports, and the government’s approval for 1.5 million tonnes of sugar exports is also influencing prices.
★ At the global level, the International Sugar Organization (ISO) has projected a sugar surplus in 2025–26, while Thailand is also expected to post higher output.
★ Overall, sugar prices may remain under pressure in the short term due to ample global supply, though a possible decline in Brazil’s production in the coming seasons could provide some support later.