The global sugar surplus will be smaller than previously forecast as millers in Brazil, the world’s largest producer, make more ethanol next year, Kingsman SA said in its fourth estimate for the 2013-14 season.
Raw sugar may drop to 17 cents a pound over the remainder of this year, the lowest level since 2010, as global supply is set to beat demand for a third year, according to broker and researcher Kingsman SA.
The sugar-cane crop in Brazil’s center south, the main growing region of the world’s biggest producer, may climb 60 million to 65 million metric tons in the season that starts there in April, according to Kingsman SA.
The global refined sugar market will stay in deficit this year, with import demand exceeding available exports by 1 million metric tons, even as raw-sugar production expands, said Kingsman SA, a broker and researcher.
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.