Broker StoneX said the season will see demand exceed production for the third year in a row, one million tonnes higher than estimates in October, with a supply deficit estimated at 1.8 million tonnes.
The world’s sugar supply balance is expected to deteriorate in the 2021-22 season, which began in October, due to over-use of sugarcane. ethanol production in india And lower production in Brazil, broker StoneX said on Tuesday.
StoneX said the season would see demand exceed production for the third year in a row, with a supply deficit estimated at 1.8 million tonnes, up one million tonnes from estimates in October.
Global production was seen at 186.6 million tonnes, while demand was estimated at 188.4 million tonnes. The broker said that demand has improved recently as sea freight prices have declined. It saw more purchases from Asian countries and refining hubs.
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StoneX said India appears to be producing record quantities of sugarcane after a positive season, but the country’s ethanol blending program will take the equivalent of 3 million tonnes of sugar from the market, resulting in the same output as originally As in the previous crop, or about 31 million tons.
Brazil’s central-south region has seen production at 31.3 million tonnes, down 12% from a year ago.
StoneX said Brazil’s new sugar season, which begins in April, will see a 6% improvement in total cane volume to 565.3 million tonnes.
Sugar production in the EU and the United Kingdom region is projected to increase by about 12% to 17.2 million tonnes in 2021-22 (October-September), as a severe summer in Europe boosted sugar beet yields.
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