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.
In the basement kitchen of the Churchill War Rooms in London, Maree Harrison and her chefs bake hundreds of flapjacks a month for catered events using the same Golden Syrup favored by Queen Elizabeth. Soon, they may need to change the recipe.
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.