Sugar futures gained a bit on bargain hunting after sustained losses pulled the commodity to four and half year low in New York. Market is concerned about demand which led to heavy the liquidation of the July NY sugar futures contract. There is a likelihood of a hefty global sugar surplus for the 2025/26 season, keeping prices under continued pressure after prices broke under 20 cents mark. The counter neared 15.50 cents mark yesterday before pulling up and currently rose 1% to trade just under 16 cents mark. The outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices. India's National Federation of Cooperative Sugar Factories projected that India's 2025/26 sugar production would spike 19% on year to 35 MMT, citing larger planted cane acreage. The outlook for abundant rainfall in India could lead to a large sugar crop.

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