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Barchart
Barchart
Rich Asplund

Sugar Prices Settle Lower on the Outlook for Record Brazil Sugar Output

May NY world sugar #11 (SBK25) Wednesday closed down -0.38 (-1.90%), and May London ICE white sugar #5 (SWK25) closed down -9.10 (-1.61%).

Sugar prices Wednesday posted moderate losses and came under pressure after sugar trader Czarnikow projected Brazil's 2025/26 sugar production would climb to a record 43.6 MMT, saying producing sugar is more profitable than ethanol production.  Also, Wednesday's fall in crude prices (CLJ25) to a 2-1/4 month low weighed on sugar prices.  The weakness in crude oil undercuts ethanol prices and may prompt the world's sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.  

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