Sugar prices extended their rally, with NY sugar hitting a three-and-a-half-week high and London sugar a four-week high, as analysts raised deficit forecasts for the 2026/27 season. Covrig Analytics now sees a global sugar deficit of 300,000 metric tons, reversing its earlier surplus call, while Green Pool Commodity Specialists widened its deficit estimate to 3.3 million metric tons and StoneX raised its deficit forecast to 1.7 million metric tons. Concerns over India's monsoon rainfall and the potential impact of a strong El Niño on top producers Brazil, India, and Thailand are also supporting prices. Brazil's sugar output has been curbed as mills shift more cane to ethanol, with Unica reporting a 2% year-on-year drop in Center-South production through May. The International Sugar Organization projects a global deficit of 262,000 metric tons for 2026/27, citing El Niño risks, while the USDA forecasts a 6.5% decline in world sugar production to 184.854 million metric tons.