Global sugar prices stay high as El Niño boosts BRR, KSL and KTIS outlook

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Global sugar prices remain elevated, most recently around 18.74 cents per pound based on futures contract figures at the end of September 2026, prompting analysts at CGS International Securities (Thailand) to take a positive view of sugar stocks. They said the recovery in sugar prices is clearly gaining momentum because of an El Niño phenomenon that has been more severe and prolonged than expected, hurting sugarcane cultivation and reducing sugar output in many countries. Brazil, the world's major sugar producer, is beginning to show signs of lower production, running counter to fairly strong demand growth in India and elsewhere. In addition, the baht's continued weakening, most recently moving in a range of 33.45 to 33.70 baht per dollar on 30 September 2026, is another supporting factor, since most revenue for sugar operators comes from exporting sugar abroad. The research team therefore sees an opportunity to invest in this group of stocks, mainly Buriram Sugar Public Company Limited, or BRR, Khon Kaen Sugar Industry Public Company Limited, or KSL, Khonburi Sugar Public Company Limited, or KBS, and Kaset Thai International Sugar Corporation Public Company Limited, or KTIS. Issara Thawiltermsap, managing director of Khonburi Sugar Public Company Limited, or KBS, said the upward trend in global sugar prices should be a positive factor for KBS's operations, because sugar and related businesses account for as much as about 80% of its revenue. But the benefit will become clear only from next year's sugarcane crushing period onward, since most of this year's sugar has already been sold and priced forward under contracts. The weaker baht also helps drive up revenue from sugar exports, because exports currently account for nearly 80% of revenue in the sugar group.

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⛏Sugar No.11 Futures
SUGAR
▲ PositiveSupplyrelevance

El Niño hurting sugarcane cultivation and cutting output in Brazil and elsewhere lifts Sugar No.11 futures.

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