FX.co ★ Sugar Futures at Over 1-Month High

Sugar futures recently climbed beyond 15.1 cents per pound, marking their highest level since October 23. This increase is attributed to the likelihood of reduced shipments from India. The Indian Ministry of Food is contemplating a hike in ethanol prices for gasoline blends, which might lead mills to prioritize biofuel production over sugar, especially amidst an anticipated domestic surplus. Such a shift could diminish both Indian exports and the global sugar supply. This development comes on the heels of a previous statement indicating that India's exports may reach only 1.5 million tons in the 2025/26 season, falling short of the initially projected 2 million tons. Concurrently, traders are keeping a close eye on the final stages of Brazil's harvest. Upcoming data on sugar and cane output in Brazil's Centre-South region for the first half of November is expected in the coming days. On November 17, the International Sugar Organization (ISO) projected a global surplus of 1.63 million tons for 2025/26, following a deficit of 2.916 million tons in 2024/25, primarily due to increased sugar production in countries like India, Thailand, and Pakistan.