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Barchart
Barchart
Rich Asplund

Expectations for a Global Surplus Pressure Sugar Prices

July NY world sugar #11 (SBN25) Wednesday closed down -0.06 (-0.36%), and August London ICE white sugar #5 (SWQ25) closed up +5.00 (+1.07%).

Sugar prices on Wednesday settled mixed.  Sugar prices have been in a two-month-long downtrend, with NY sugar posting a 4-year nearest-futures low last Friday and London sugar posting a 3-3/4 year low.   Expectations for a global sugar surplus are hammering prices.  On May 22, the USDA, in its biannual report, projected that global 2025/26 sugar production would increase by +4.7% year-over-year (y/y) to a record 189.318 million metric tons (MMT), with a global sugar surplus of 41.188 MMT, up 7.5% year-over-year.

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