Hot Commodities: Raw Sugar slides to four-year low as markets eye elevated global output

Global Sugar prices are staying under pressure amid hopes of elevated global output clubbed with a protracted outlook for global crude oil prices owing to trade worries. The benchmark July NY sugar futures slipped near four-year low of 16.70 cents per pound. CONAB has recently forecasted Brazil's 2025/26 Brazil sugar production would gain 4% y/y to 45.875 million MT. The USDA's Foreign Agricultural Service states that India's 2025/26 sugar production would rise 26% y/y to 35 million MT (MMT) due to favorable monsoon rainfall. Prospect of elevated global production is set to weigh on the sentiments in near term. Earlier this week, India's National Federation of Cooperative Sugar Factories projected India's 2025/26 sugar production would climb 19% on year to 35 MMT. On May 22, the USDA, in its biannual report, projected that global 2025/26 sugar production would increase by 4.7% to a record 189.318 MMT, with a global sugar surplus of 41.188 MMT, up 7.5% year-over-year.

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