Analyst Green Pool has raised its forecast for an anticipated global sugar deficit in the 2019/20 season to 3,67 million tonnes from a previous projection of 1,62 million tonnes.
It is reported by Reuters.
The Australia-based analyst said on Friday that the main changes to its balance sheet were reductions in crop forecasts for Centre-South Brazil and India.
Sugar production in the Centre-South region of Brazil was projected at 25,8 million tonnes, tel quel, down from a previous forecast of 26,8 million tonnes.
«Add to that the reduction in India’s crop prospects, dry conditions in Thailand, the EU, Australia and Mexico, and suddenly there are a number of negative factors for global sugar production prospects», — Green Pool said.
India's 2019/20 crop was cut to 28,3 million tonnes from 29,5 million tonnes, tel quel.
«The market is only slowly working its way through very large stocks, and a small-ish deficit for 19/20 – while a step in the right direction from a producers' perspective – probably needs to be larger to cause prices to move back to longer-term average levels», — the analyst said.
Green Pool estimated there was a global surplus of 18,87 million tonnes in 2017/18 and 3,75 million tonnes in 2018/19.