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Sugar prices extend rally as UNICA reports Brazil Center-South June output down 26.3%

AI Market Summary
Sugar prices extended a weeklong rally as supply risks intensified: EU/UK output is projected to hit an 11-year low amid drought and heat, and Brazil's Center-South June sugar production fell 26.3% y/y. India's monsoon outlook was downgraded and rainfall remains below normal, while El Niño raises broader disruption risk. Multiple forecasters shifted 2026/27 balances toward deficit, tightening the forward supply-demand narrative.
Impact level
● Medium
Affected assets
NCCOSUGAR2USD/USDT+0.43%
AI Insight · NCCOSUGAR2USD/USDTAI Insight
▲ Bullish
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Sugar prices are rising as supply concerns grow, after UNICA data showed Brazil Center-South June sugar production fell 26.3% year on year. In India, monsoon rainfall forecasts have been cut and actual rainfall remains below normal, adding to worries about the crop. For 2026/27, global sugar consumption is expected to rise 0.4% to 179.991 million tons. A tighter supply-demand outlook is supporting prices.