⛏Sugar No.11 Futures
SUGAR
▲ PositiveSupplyrelevance
Weak monsoon in India threatens sugarcane harvest, plus Brazil production decline and shift to ethanol, tightening global supply.
Impact on assets 1
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Sugar prices surged today as weak monsoon rains in India threatened the sugarcane harvest in the world's second-largest producer. NY sugar hit a two-week high and London sugar reached a 2.75-month high after India's Meteorological Department reported cumulative monsoon rainfall 42% below normal as of June 26, with the Earth Science Ministry warning this could be the weakest monsoon in 11 years. Adding support, Brazil's 2026/27 Center-South sugar production through May fell 2% year-on-year to 6.838 million metric tons as mills shifted more cane to ethanol, and trader Czarnikow revised its global 2026/27 sugar balance to a deficit of 100,000 metric tons from a prior surplus estimate. The rally was also underpinned by El Niño concerns, with Japan's Meteorological Agency confirming the weather pattern's formation, which is likely to reduce rainfall in Brazil, India, and Thailand, the top three sugar-producing regions.
Weak monsoon in India threatens sugarcane harvest, plus Brazil production decline and shift to ethanol, tightening global supply.