Global sugar market to go into deficit this season, says Sucden

Published 2024년 10월 11일

Tridge summary

The global sugar market is projected to face a deficit of nearly 2 million metric tons this season due to a significant decrease in raw sugar availability from Brazil, the world's leading producer. The country's center-south region is experiencing unfavorable weather conditions, leading to a raw sugar production drop by almost 40% in the fourth quarter and the first quarter of the next year compared to the previous year. While northern hemisphere sugar producers, such as those using cane and beet, have benefited from high sugar prices, falling grain prices, and favorable weather in 2023, they may not be able to make up for the shortfall in Brazil. The potential of No. 2 sugar producer India to contribute to the market by resuming exports is seen as slim, and the market has already seen raw sugar futures reaching six-month highs due to concerns over the ongoing drought in Brazil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

By Maytaal Angel LONDON (Reuters) - The global sugar market will enter a deficit of almost 2 million metric tons this season as the crop in top producer Brazil suffers from unfavorable weather patterns, according to Sucres et Denrees (Sucden). The trader said in a report this week that raw sugar availability from Brazil’s center-south region is expected to be almost 40% lower in the fourth and first quarters compared with a year earlier. It noted that in the northern hemisphere, cane and beet production had responded positively to high sugar prices in 2023, falling grain prices and generally favorable weather, but said this would not be enough to compensate Brazil. Brazil’s cane has been damaged by drought and fire and so rains in the coming months will be crucial in determining its potential, Sucden said, adding that the chance of No. 2 sugar ...

Source: NoticiasAgricolas