Global Sugar Prices Decline Amid Improved Supply Outlook

Global sugar prices have reached a four-month low, driven by an improved supply outlook. The International Sugar Organization (ISO) recently reduced its 2024/25 global sugar deficit forecast to 2.51 million metric tons (MMT), down from the previous estimate of 3.58 MMT. Additionally, the ISO raised its 2023/24 global sugar surplus estimate to 1.31 MMT, indicating a more balanced market ahead.Contributing to this trend, Thailand's Office of the Cane and Sugar Board projects an 18% year-over-year increase in sugar production for the 2024/25 season, reaching 10.35 MMT.In India, the Food Secretary has indicated the possibility of allowing sugar exports if a surplus remains after meeting domestic ethanol blending requirements. The government currently estimates a sugar surplus of about 1 MMT this season.These developments suggest a more favorable supply scenario, leading to the recent decline in sugar prices.