São Paulo, Brazil — May 4, 2026
Sugar prices climbed sharply for a second consecutive day, reaching a one-month high as rising gasoline costs prompted Brazilian mills to shift cane crushing toward ethanol production.
Global Sugar Deficit Widens
Green Pool Commodity Specialists revised their global sugar deficit projection for the 2026/27 season upward to 4.30 million metric tons, citing tightening supplies. The adjustment follows data from Brazil’s Unica showing sugar production in the Center-South region dropped 11.9% year-over-year to 647,000 metric tons during the first half of April.
The July New York world sugar #11 contract rose 0.27 cents (+1.81%) amid the supply constraints. Meanwhile, London ICE white sugar #5 trading was suspended due to the UK’s May Day holiday. Analysts note that the closure of the Strait of Hormuz has disrupted approximately 6% of global sugar trade, exacerbating market volatility.