Sugar prices may remain under pressure as the weakening currency of top producer Brazil helps global supplies exceed demand for a fourth consecutive year, according to the International Sugar Organization.
Sugar, the fourth-worst performing commodity this year, will be under “bearish pressure” as global production exceeds demand for a third year in 2012-2013, according to the International Sugar Organization.
The production of ethanol is putting a ceiling on global output of sugar and ethanol-blend mandates are “spreading like bushfires,” said Peter Baron, executive director of the International Sugar Organization, at a conference in the Philippines.
World sugar prices may range between 23 cents and 28 cents a pound as China, the second-biggest user, and Indonesia increase imports, draining a global surplus of 4 million metric tons, the International Sugar Organization said.
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.
Sugar production in Brazil and India, the top two producers, looks promising in the year starting October, with a possible record crop from South America, the International Sugar Organization said today.
Raw-sugar prices declined for the first time in three days on speculation that bumper crops in Brazil and India, the world’s biggest producers, will boost supplies next year. Coffee futures also dropped.