London: London-based Czarnikow, a prominent trader and supply chain services company, has projected a modest global sugar surplus of 1.6 million metric tons for the ongoing 2023/24 season, according to nasdaq.
This optimistic outlook is attributed to favorable weather conditions in leading sugar producer Brazil and substantial rains during the latter part of the season in Thailand.
Anticipating an increase in sugar production, Czarnikow now estimates the total output for 2023/24 to reach 179.7 million tons, marking a 1.3 million ton rise from its previous forecast in December. Despite this uptick, the company’s consumption projection remains relatively stable at 178.1 million tons.
Czarnikow highlighted the successful harvests in numerous European countries, even in the face of increased rainfall towards the end of the season. Russia, too, experienced a bountiful year, surpassing initial yield expectations.
Looking ahead to the 2024/25 season, Czarnikow predicts that augmented cane prices in regions like China and Thailand will incentivize farmers to expand acreage. This expansion is foreseen to contribute to a boost in global sugar production, reaching 180.2 million tons. Despite this increase, the market is expected to face a minor deficit of 0.3 million tons.
