Global Sugar Prices Rise on Persistent Supply Concerns from India, Thailand

February 8, 2026 – Global sugar prices have shown a slight upward trend this week, primarily driven by ongoing concerns regarding supply shortfalls from key exporting nations, India and Thailand. Traders are closely monitoring weather patterns in both regions, with drought conditions in parts of Thailand raising fears of a further reduction in cane crushing yields for the current season. India, meanwhile, continues to grapple with domestic demand pressures and a cautious approach to export allocations, leading to tighter availability on the international market. The International Sugar Organization (ISO) recently revised its global sugar balance forecast, indicating a potential deficit for the 2025/26 marketing year, which is contributing to the bullish sentiment. Analysts at Sucden Financial noted that 'the market is reacting to a combination of real and perceived supply constraints. While Brazil's output remains robust, it's not enough to fully offset the anxieties surrounding Asian production.' Futures contracts for raw sugar on ICE Futures US have seen modest gains, with the March 2026 contract trading around 21.50 cents per pound. Refined sugar prices are also reflecting this trend, albeit with some regional variations. Market participants are now keenly awaiting further updates on monsoon performance in India and the final crushing figures from Thailand to gauge the true extent of the supply situation for the coming months. Any significant deviation from current expectations could trigger further volatility in the global sugar market.