ISO raises 2018/19 global sugar surplus forecast

Tuesday, 11 June 2019 00:27 - - {{hitsCtrl.values.hits}}

FILE PHOTO: A corn crop at Cercado Grande farm, where expansion of grains cultivation led the farm to scrap a contract with a sugar mill for cane planting in Itajai, Sao Paulo state, Brazil - REUTERS

London (Reuters): The International Sugar Organization (ISO) on Monday forecast a global sugar surplus of 1.83 million tons in the 2018/19 season, up from a previous estimate of 641,000 tons.

The increase reflects “spectacular” production in India and Thailand as well as a diminished outlook for sugar consumption, the inter-governmental body said in a quarterly report.

“At this late stage of the crop cycle, the world sugar economy has managed to generate some late-season surprises, worsening the fundamental picture,” the ISO said.

Global sugar production in 2018/19 (October/September) was seen at 178.75 million tons, marginally above a previous projection of 178.68 million, with a decrease in output in Brazil helping to limit the extent of the rise.

Expected sugar consumption in 2018/19 was revised down to 176.91 million tons, from the previous forecast of 178.04 million tons.

A shift to a global deficit of about 3 million tons was provisionally seen for 2019/20.

“It has to be stressed that any price recovery on the back of a statistical deficit of this magnitude might be muted by the huge stocks accumulated since the beginning of the surplus phase in 2017/18,” the ISO said.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.