Raw sugar futures have advanced for a third consecutive day, marking their longest winning streak in five months, driven by renewed concerns over diminished cane yields in Brazil. The top grower's 2025-26 sugar production forecast has been revised down to 39-40 million tons from an earlier expectation of 41 million tons, primarily due to widespread dryness impacting crop development. This anticipated reduction in output is expected to tighten global sugar supplies.
Raw sugar futures have registered their longest winning streak in five months, advancing for a third consecutive day on significant supply-side concerns. The primary catalyst for this upward momentum is the downward revision of production forecasts for Brazil, the world's top grower. Market estimates, as cited by Meir Commodities India Pvt., now place Brazil's 2025-26 sugar output at 39 to 40 million tons, a notable reduction from the previous expectation of 41 million tons. This anticipated shortfall is directly attributed to adverse weather conditions, specifically widespread dryness during the cane's critical development phase, which has compromised crop yields. The direct implication is a tightening of global sugar supply, providing a fundamental support for the current bullish price action in the futures market.
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