The global sugar surplus for the 2012-13 season started Oct. 1 will be 38 percent bigger than estimated in November partly because of more supplies from top grower Brazil, the International Sugar Organization said.
Record global sugar inventories are forcing Brazilian exporters to offer discounts on raw-sweetener supplies, helping to bolster profit margins for processors as they increase output of the refined commodity.
The global sugar surplus may be 30 percent larger than earlier estimated as bigger harvests from Brazil and India, the largest producers, drive a “period of low prices,” researcher and broker Kingsman SA said today.
An end to sugar quotas in the European Union, expected by the EU Council as early as 2017, may promote trade of the sweetener within Africa as Ethiopia and Nigeria plan to raise output, said Ecobank Transnational Ltd.
Raw-sugar prices, which slumped by more than half after reaching the highest level since 1981, may gain as stockpiles are rebuilt and ethanol demand increases, according to Queensland Sugar Ltd. Chairman Alan Winney .