India’s early harvest has driven a sharp jump in sugar output, cutting near-term
import needs and pressing global sugar prices. The National Federation of
Cooperative Sugar Factories said output in the current crush season reached
845,000 tons as of Oct. 31, more than eight times a year earlier. Early gains
and investor profit-taking pushed New York raw sugar futures down as much as
3.5% on Tuesday to their lowest since late September; London white sugar futures
also fell. Domestic stocks remain low and mills are accelerating production to
contain local prices, but markets worry a strong El Nino could reduce yields and
push the global sugar market toward a supply deficit; season cumulative output
is still expected to be below normal. Greenleaf Consultancy analyst Harsh Soni
said the strong start was unsurprising and that markets will react to actual
data.
