2026.01.0515:25:08UTC+00Sugar Futures Hover Near 2-Week Lows

Sugar futures inched upward to approximately 14.7 cents per pound, remaining close to their lowest point since December 18, as the market continues to foresee a global surplus in the 2025/26 season. This expectation is fueled by robust harvests in major producing countries such as India, Brazil, and Thailand. According to Rabobank, the global sugar market is anticipated to experience a surplus of roughly 2.6 million tonnes in the 2025/26 marketing year, prompted by a rebound in India’s sugar output following two seasons of excessive rainfall during the monsoons. Additionally, market participants are closely observing the potential for increased Indian exports, following statements from the food secretary suggesting the government may allow additional exports to mitigate domestic oversupply. Conversely, early projections for Brazil’s 2026/27 harvest suggest a decline in sugar availability. Consultancy Safras & Mercado has projected that Brazilian sugar production will decrease by 3.9% in the forthcoming cycle, resulting in a total of 41.8 million tons, down from the 43.5 million tons forecasted for 2025/26.