Sugar Prices Strengthen Amid Prospects of Declining Production in Brazil

22-Apr-2026 11:22 AM

New York. In the Latin American nation of Brazil, there is a likelihood that a greater proportion of sugarcane will be diverted toward ethanol production this year, potentially leading to a decline in sugar output.

As Brazil stands as the world's leading producer and exporter of sugar, a reduction in its production naturally translates to a strengthening of market prices.

On the New York Exchange, futures prices for raw sugar for the May contract rose by 0.01 cents (0.07 percent) per pound during the previous trading session; concurrently, on the London Exchange, futures prices for white sugar for August delivery recorded a gain of $4.90 per tonne (1.17 percent).

The U.S. Department of Agriculture (USDA) has projected Brazil's sugar production for the 2026-27 season at 42.5 million tonnes—a figure representing a 3 percent decline compared to the production volume of the 2025-26 season.

Furthermore, the global surplus sugar stock estimate has been revised downward from 1.4 million tonnes to 0.8 million tonnes. Separately, another analyst has lowered their projection for the global surplus stock for the 2026-27 season from 3.4 million tonnes to 1.1 million tonnes, and for the 2025-26 season, from 8.3 million tonnes to 5.8 million tonnes.