Sugar prices to rise as global market swings into deficit
Europe turning to more profitable crops and Brazil diverting sugar-cane harvest to ethanol production expected to lead to shortage in the 2019/2020 season
London — World sugar prices are forecast to rise this year with the market swinging into deficit in the 2019/2020 season, a Reuters survey of 10 analysts and traders showed on Monday. Raw sugar prices were expected to end the year at US14.60c per pound, up 15% from Friday’s close, according to the median forecast of responses. The world sugar balance was seen switching to a deficit of 1.90-million tons in 2019/2020 compared with a surplus of 2.55 million in 2018/2019. The shift was partly driven by a forecast fall in India’s production to 29.50-million tons in 2019/2020 from 32-million tons in 2018/2019, according to the poll. Respondents said potential exports from India, where stocks have been climbing, may limit the scope for a rise in prices while the relative profitability of sugar and ethanol production in Brazil would also have a major influence on prices. Depressed sugar prices have led Brazilian companies to increase their capacity to produce ethanol, with many mills able t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.