The world sugar market is poised for two consecutive years of surplus production, following a surge in output from Thailand and India, Rabobank said on Tuesday.
The global market is likely to see a sugar surplus of 10.5 million tonnes, raw value, in the 2017/18 season due to “enormous” harvests in the two countries.
This was up 3 million tonnes from the group’s previous quarterly forecast, with Rabobank signalling it was almost entirely due to revisions to its Indian and Thai production expectations.
“These crops haven’t been merely big, they have both been enormous,” the group wrote in its Q2 sugar update.
The global market is likely to see a sugar surplus of 10.5 million tonnes, raw value, in the 2017/18 season due to “enormous” harvests in the two countries.
This was up 3 million tonnes from the group’s previous quarterly forecast, with Rabobank signalling it was almost entirely due to revisions to its Indian and Thai production expectations.
“These crops haven’t been merely big, they have both been enormous,” the group wrote in its Q2 sugar update.
