Global sugar market forecast to post deficit of nearly 2 million tonnes in current crop year

A report by Sucden predicts a significant decrease in raw sugar supplies from Brazil's Center-South region in Q4/2024 and Q1/2025, leading to a global sugar market deficit and a sharp increase in raw sugar prices. The prices, which hit a six-month high last month, are affecting traders, consumers, and food manufacturers worldwide. The Food and Agriculture Organization's global food index has also increased due to the rise in sugar prices. Countries like Thailand, India, China, and Mexico are producing more sugar, but the global industry's reliance on Brazil's output means that the increase in production does not offset the shortfall. The International Sugar Organization forecasts a deficit of 3.58 million tons in the 2024/25 season, with global sugar production expected to decrease by 1.1%. The US Department of Agriculture predicts a 4.7% drop in global sugar inventories by the end of the 2024/25 marketing year. India, the world's second-largest sugar producer, may be in a position to help the market by increasing exports, following its current export restrictions.