FX.co ★ Sugar Futures Ease

Sugar futures have recently traded just under 14.8 cents per pound, a slight decline from the three-week peak of nearly 15 cents per pound recorded on November 14. This shift comes amidst a more positive outlook for global sugar supply. On November 17, the International Sugar Organization (ISO) forecasted a global surplus of 1.63 million tons for the 2025/26 year, following a previous deficit of 2.916 million tons in 2024-25. This anticipated surplus is largely attributed to increased sugar production levels in India, Thailand, and Pakistan. Globally, sugar production is expected to rise by 3.15%, reaching 181.77 million tons, which surpasses the projected consumption increase of just 0.6% to 180.14 million tons. Concurrently, data from UNICA indicated a 16.4% increase in sugar output in Brazil's major center-south sugar belt, reaching 2.07 million metric tons in the latter half of October compared to the previous year. Additionally, the Indian Ministry of Food revealed its plans to permit mills to export 1.5 million tons of sugar in the 2025/26 crop year, which is below earlier estimates of 2 million tons.