ISO cuts view on global sugar surplus to below 1 mln tns
The International Sugar Organization (ISO) on Monday sharply reduced its projection for a global sugar supply surplus in 2022/23 (Oct-Sept) to 850,000 tonnes from 4.15 million tonnes seen in its previous quarterly report in February.
It is reported by Nasdaq.
The new estimate includes revisions in key regions such as Europe, China, Thailand and India, where production came in below previous expectations (see tables below), a situation that led benchmark sugar prices SBc1 to hit an 11-year high recently.
Global sugar production is now seen at 177.36 million tonnes, down from 180.43 million tonnes previously. Consumption was increased by 233,000 tonnes to 176.51 million tonnes.
ISO has yet to assess the new season (2023/24), but its executive director Jose Orive said during the New York Sugar Week earlier this month that there is an indication for a growth in total production of around 2 million tonnes, while consumption should grow 1.2%.
Orive said there could be a surplus of around 2 million tonnes in the new season, a view that diverges from most analysts that see a deficit.