Global surplus of sugar will maintain the low price trends

The upcoming worldwide cane and beet harvest, coupled with demand uncertainty, will underpin the emergence of a small global sugar surplus in the 2020/21 season.

With Europe, the US, and India about to embark on their respective harvests, and Australia and Brazil wrapping up their seasons, the 2019/20 sugar deficit projection points to a well-supplied market - and suggests raw sugar prices will continue trading in a US$ 0.11/lb to US$ 0.13/lb range.

Demand during the coming months, if and when pandemic-driven sugar consumption declines appear in trade, would also impact the short-term outlook for sugar.

Australian weekly crushing totals were exceeding 1.5 million metric tonnes, matching the peak volumes of previous seasons.