Sugar futures pulled back on Wednesday after earlier rallying to new 1.25-year highs. October NY world sugar #11 closed down 0.31, or 1.85%, and October London ICE white sugar #5 closed down 4.40, or 0.86%, as long liquidation pressure emerged. The recent rally was driven by concerns over weather-related declines in global sugar production, including an 11-year low in EU and UK output and a 26.3% year-over-year drop in Brazil's Center-South June production. Analysts have also raised global sugar deficit forecasts for 2026/27, with Green Pool Commodity Specialists projecting a deficit of 3.3 MMT and StoneX forecasting 1.7 MMT.
