Last week, prices of world sugar №11 in New York (SBN24) and London white sugar ICE №5 (SWQ24) continued their downward trend. New York sugar closed lower by -0.22 (18.65; -1.17%), while London sugar ended down by -10.70 (542.30; -1.93%), according to data from Barchart.
Although sugar prices dipped slightly on Wednesday, they still remain above recent lows. On Tuesday, sugar prices in New York fell to the lowest level in one and a half years, while London sugar hit a low for the past year and a quarter.
An increase in sugar production in Brazil was one of the reasons for the decline in prices on the global market. According to Unica, sugar production in Brazil in the second half of April increased by 84.0% year over year, reaching 1.843 million tons. During the 2024/25 marketing year (April-March), sugar production grew by 65.9% year over year, totaling 2.558 million tons. Brazilian sugar mills increased sugarcane processing for sugar production by increasing ethanol production. This year, 46.96% of sugarcane was processed into sugar compared to 41.42% last year.