Indian farmers may reap at least 6 percent more sugar than forecast by the government and industry, extending the longest global glut in more than a decade and a bear market that began in September.
Sugar prices climbed to a one-week high on speculation that crop damage from floods in Pakistan will spur demand for imports.
Sugar futures may rise on concerns about tight supplies from Brazil and other Latin American countries, a survey showed.
Raw sugar may climb 19 percent by March if dry weather in Brazil, the world’s biggest producer, persists, amid growing demand from countries including China, according to broker Newedge USA.
Raw sugar may rebound as the biggest slump in 22 years attracts buyers amid signs that global demand for the commodity exceeds supply, according to Simbhaoli Sugars Ltd. and other Indian producers.
Sugar exports from Thailand, the second-largest shipper, may fall 5 percent in 2011 as local buyers are allotted a higher share of output, according to the Office of the Cane and Sugar Board .
Sugar production forecasts in Australia, the third-largest exporter, were cut by producers’ group Canegrowers and National Australia Bank Ltd. because of rain, as prices rise amid concerns about tight global supplies.
"If the actual crop is going to be more than expected it's detrimental for the world market."
- Sergey Gudoshnikov on Nov 07, 2012