Sugar Prices Dip Amid Rising Global Supply
Sugar futures declined to below 17.7 cents per pound in January, marking their lowest levels since June 2021. This drop comes as increased supply from major producers meets uncertain global demand. India, the world’s second-largest sugar producer, approved the export of 1 million tonnes after achieving a rare supply surplus, with production expected to exceed 27 million tonnes this season. Similarly, favorable weather conditions in Brazil, the top producer, boosted crop yields. Coupled with softer ethanol prices, this led Brazilian mills to prioritize sugar production, resulting in a record-high output of 43.1 million tonnes. Furthermore, record-low levels of the BRL and INR have allowed producers to lower asking prices in dollar terms, intensifying bearish trends in the market.

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