US sugar futures slipped toward 14 US cents per pound, the lowest level since mid‑March, under pressure from rising output in major producers India and Brazil. India’s Food Secretary stated that the government has no plans to ban sugar exports this year, easing market concerns that more production could be diverted to ethanol and reinforcing expectations of ample supply. Recent data also showed that India’s sugar production increased by 9% between October and March of the 2025/26 marketing year, reaching 27.12 million tons.
In Brazil, sugar output in the Center-South region rose 0.7% in the 2025/26 season to 40.25 million tons, supported by a higher share of sugarcane being processed into sugar rather than ethanol. Easing geopolitical tensions added further downward pressure on prices: the announcement of a two-week ceasefire in the Middle East and the anticipated reopening of the Strait of Hormuz drove oil prices sharply lower, reducing incentives for producers to divert additional sugarcane toward ethanol production.
