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Sugar Glut: Global Prices Plunge as Supply Soars

Sugar Glut: Global Prices Plunge as Supply Soars

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This is your Daily Sugar Price Tracker with Vanessa Clark podcast.

Welcome to the Daily Sugar Price Tracker, I am Vanessa Clark, and thanks so much for joining me for another update on everything you need to know about the price of sugar. If you’re searching for the latest sugar prices, global production insights, and what the numbers mean for you, you are in the right place.

Let’s start with the most current market update for October thirty first, twenty twenty-five. Raw sugar futures, which set the global benchmark, have dropped to fourteen point twenty-five cents per pound, marking a slight decrease of zero point twenty-one percent from yesterday. Over the past month, sugar prices are down more than eleven percent, and compared to this time last year, sugar is trading over thirty-five percent lower. That puts us at the lowest prices seen in about five years, scraping levels last reached in late twenty-twenty according to current trading data.

So, why is sugar so cheap right now? There are a few key drivers. First, production is booming around the world. Brazil, the world’s largest sugar producer and exporter, has ramped up output, with mills crushing more cane for sugar and less for ethanol as energy prices slip. Across India, a strong monsoon has boosted the new sugar crop, and mills are expected to produce up to nineteen percent more than last season. Thailand is also reporting a larger harvest, with output expected to rise by five percent. That means there is simply more sugar available than the market needs, pushing prices down and fueling what experts call a global supply glut.

On the domestic front in India, M-grade sugar in Muzaffarnagar is going for between three thousand nine hundred forty and four thousand rupees per quintal, while in Kolhapur, S-grade sugar is trading in the range of three thousand seven hundred forty to three thousand seven hundred eighty rupees per quintal. Over in Maharashtra, ex-mill prices are holding steady at about three thousand seven hundred eighty to three thousand eight hundred rupees per quintal, with slightly higher prices seen in South Karnataka and Tamil Nadu. These stable regional prices reflect subdued demand, as the festive season has not delivered its usual spike in consumption. Mills are preparing for the start of the sugarcane crushing season, which could further increase supply in the coming weeks.

Internationally, the trend is still downward. Industry analysts are now predicting a global surplus for the upcoming twenty twenty-five and twenty twenty-six season, with some forecasts putting the excess at nearly two million tons—an about-face from earlier deficit predictions. Despite this oversupply, some experts warn that if more mills begin to focus on ethanol due to falling oil prices, it could eventually help support sugar prices by limiting export volumes.

So, what does this mean if you are in the food industry, or just concerned with your grocery budget? This period of low prices might offer a chance for buyers to lock in favorable contracts or for manufacturers to hedge their future costs. For everyday consumers, expect sugar prices on the shelf to remain stable for now, though longer-term, that could change if global supply tightens or if more crop is diverted from sugar toward biofuels.

Here are my two quick takeaways: if you are sourcing sugar for your business, now is a great time to keep a watchful eye on forward prices and consider negotiating with suppliers. If you are a consumer, you can breathe easy for the time being—lower global commodity prices should help keep household costs from rising.

That wraps up today’s episode of Daily Sugar Price Tracker. If you found this update useful, be sure to subscribe and tune in tomorrow for more fresh analysis on global sugar prices. This is Vanessa Clark, wishing you a sweet day ahead. Thanks for listening.

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