Global Sugar Prices Rise Amid Persistent Supply Concerns in Brazil and India

Global sugar futures experienced a modest increase on the Intercontinental Exchange (ICE) this week, as market analysts continue to grapple with persistent supply concerns emanating from key producing nations. Brazil, the world's largest sugar exporter, is facing an extended period of dry weather in its central-south region, potentially impacting the upcoming 2026/27 cane crop. While the current harvest is largely complete, the lack of adequate rainfall could hinder cane development for the next season, leading to revised production forecasts. Concurrently, India's sugar output for the 2025/26 marketing year is projected to be slightly below initial estimates, primarily due to unseasonal rainfall affecting cane yields in Maharashtra and Karnataka. Government sources indicate that while domestic demand remains robust, export allocations might be tightened to ensure sufficient local supply, a move that would further constrain global availability. Traders are closely monitoring weather patterns and government policy announcements from these two giants, as any significant shift could trigger substantial price volatility. Analysts from HiSugar's research division suggest that current price levels reflect a cautious optimism, but underlying supply risks remain a dominant factor shaping market sentiment for the foreseeable future.