Global sugar supply surplus rises on India, Thailand, says broker

Sugar

India

Thailand

Market & Price Trends

Published Mar 22, 2024

Tridge summary

Broker StoneX predicts a larger supply surplus in the global sugar market for the 2023/24 season due to production recoveries in India and Thailand. The surplus is expected to exceed total demand by 3.88 million metric tons, an increase from the 3.4 million tons projected in February. However, due to drier than normal weather, StoneX has lowered its estimate for Brazil’s Centre-South (CS) crop, forecasting a 9% drop in agricultural yields. Consequently, a record sugar production in Brazil’s CS in 2024/25 is no longer anticipated.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

NEW YORK (Reuters) – The global sugar market is projected to have a larger than expected supply surplus in the 2023/24 October to September season due to production recoveries in India and Thailand in the later stages of their crops, broker StoneX said on Thursday. It projected that global sugar production exceed total demand by 3.88 million metric tons, up from 3.4 million tons seen in February. Better than expected production in Asia offset cuts in Mexico and Brazil, the broker said. StoneX also released a new estimate for the upcoming Brazil’s Centre-South (CS) crop that starts in April. It sharply reduced its view for total sugarcane crush from 622 million tons in January to 602 million tons, saying agricultural yields will fall around 9% due to drier than normal weather. The broker no longer sees a record sugar production in Brazil’s CS in 2024/25 (April-March) – despite the higher focus on sugar production by the mills – as smaller volumes of cane will prevent the region ...

Source: Theprint