AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Sugar Prices Slip Amid Dollar Strength, Brazilian Production to Rise
ByAinvest
Wednesday, Aug 27, 2025 2:03 am ET1min read
Sugar prices closed lower on Monday due to a stronger dollar and pressure from Brazil's sugar mills increasing production. However, signs of stronger global sugar demand, such as China's July sugar imports surging +76%, and Pakistan's tender for 200,000 MT of refined sugar, provide some support. The outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices.
Sugar prices closed lower on Monday, influenced by a stronger dollar and increased production from Brazil's sugar mills. However, signs of stronger global sugar demand, such as China's July sugar imports surging +76% and Pakistan's tender for 200,000 MT of refined sugar, provided some support. The outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices.Brazil's sugar mills are prioritizing sugar production over ethanol, crushing more cane for sugar, driven by drier cane crops. This trend is expected to continue as harvesting peaks. According to Covrig Analytics, Brazil's sugar mills are crushing more cane for sugar, which has put pressure on sugar prices [1].
On the other hand, global sugar demand has shown signs of strength. China's July sugar imports surged +76% to 740,000 MT, and Pakistan recently tendered for 200,000 MT of refined sugar. These factors provide some support for sugar prices [1].
The outlook for higher sugar production in India is bearish for prices. India's Meteorological Department reported that cumulative monsoon rain in India was 611.2 mm as of August 18, or 1% above normal, which is expected to lead to a bumper sugar crop. The Indian Sugar and Bio-energy Manufacturers Association recently said that it will seek permission to export 2 MMT of sugar in 2025/26. This increased production is expected to impact global sugar prices negatively [1].
The USDA projected that global 2025/26 sugar production would increase by +4.7% y/y to a record 189.318 MMT, with global sugar ending stocks at 41.188 MMT, up 7.5% y/y. However, the outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices [1].
In conclusion, while global sugar demand is strong, the outlook for higher sugar production in Brazil and India is expected to impact sugar prices. Investors should keep an eye on these developments as they may influence future price movements.
References:
[1] https://www.nasdaq.com/articles/sugar-prices-slightly-lower-prospects-higher-brazil-output
[2] https://economictimes.indiatimes.com/news/economy/agriculture/food-secretary-sees-bright-sugarcane-prospects-urges-sugar-industry-consensus-on-export-quotas/articleshow/123519895.cms
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet