Commodities Buzz: Global Sugar Prices To Stay Lax On Rising Stock (09:36, 23 Aug 2013) The dismal undertone in global sugar prices will linger for a while yet, the International Sugar Organization said, even while forecasting the first drop in world sugar production for five years. The ISO, in its first full forecasts for 2013-14, estimated that sugar output would fall by 2.1m tonnes to 180.8m tonnes. The drop, first since 2008-09, would still leave output above world consumption, which it forecast rising 3.6m tonnes to 176.3m tonnes.After three years of statistical surplus, the world sugar economy is facing another surplus season, the ISO said, estimating it at 4.5m tonnes for 2013-14. That compares with an ISO expectation in May that production would prove at least 3.5m tonnes higher than global consumption in 2013-14. It follows surpluses of 6.17m tonnes in 2011-12, and 10.3m tonnes last season. While the world surplus will decrease considerably in 2013-14, it nevertheless implies a further rise in global stocks levels, signalling pressure on prices, the ISO said. It seems that a lower global surplus per se cannot be treated as a price-supportive factor, and the market may record more losses during the 2013-14 season. Powered by Commodity Insights
Posted on: Fri, 23 Aug 2013 04:26:01 +0000